- At Afore SURA, 18% of those making Voluntary Contributions to their Savings are women.
According to the report Radiografía del Emprendimiento en México 2021 conducted by the Association of Entrepreneurs of Mexico (ASEM), 37% of companies in Mexico are founded by women. If you are part of the entrepreneurial ecosystem, you likely tend to focus on everyday aspects such as financial and human capital; however, a long-term aspect that should not be neglected is your retirement.
According to Mexico’s statistics institute, or INEGI, only 38.4% of working women in the country make contributions to an Afore account (Retirement Fund Manager), which leaves them financially vulnerable and with an uncertain retirement. In fact, women access a pension 41.6% lower than that of a man, according to Mexico’s Commission for the Retirement Savings System (Consar).
One way to secure a better financial future today is through voluntary contributions to your savings. This is why, on the occasion of Women's Entrepreneurship Day (WED) and to help close the gender pay gap in Mexico through financial education, Afore SURA is sharing three ways in which, as an entrepreneur, you could secure or improve your pension before retirement age.
1. If you are a freelance worker…
If you have always worked on your own or decide to start your business at an early age and therefore have not contributed to any Social Security Institute in Mexico, it is important to start thinking about retirement alternatives. One of them could be the Modalidad 10, a voluntary insurance the IMSS offers aimed at freelance workers.
Through voluntary payments, the Modalidad 10 entitles access to a pension at the time of your retirement and to all the benefits of a Social Security program, as if you had an employer. One of the main advantages it offers an entrepreneur with a variable income is that it allows you to calculate a pension according to a monthly income and modify the base salary according to this.
2. If you had an employer at any time…
On the other hand, if at some point in your life before making the decision to start a business you had an employer that signed you up in the Social Security system and therefore you already have contributed weeks, you should know that Modalidad 40 is a Voluntary Continuity model of the Mandatory Regime designed for people who have been discharged from this regime.
With the Modalidad 40 you could not only keep your right to a pension by enforcing your contribution weeks, but also keep generating benefits to improve it. If this is your case, besides conditions such as a minimum of 52 weeks and complying with the written process within 5 years after your leave.
3. If you have a worker-employer relation…
According to ASEM, companies founded by women constitute the main source of income for 61% of them, a second source for 23% and an extra income for the remaining 16%. If you are included in one of these and, therefore, you contribute to the Social Security with an employer relationship in your job with a higher income, remember that it is possible to make free and additional contributions to your Afore account.
Voluntary Savings are a savings and investment instrument that will allow you, among other benefits, to achieve a better pension, particularly if you contribute under Act 97; hedge your finances in case you face a reduced income and achieve different goals throughout your life, including growing your own business and giving it 100% of your time if you decide to do so.
“At Afore SURA, 39% of our clients are women, of which only 18% make Voluntary Contributions. This figure reflects the economic strength and entrepreneurial capabilities of this population group; while focusing on the relevance of continuing to promote financial education with a gender perspective, implementing services and enabling digital channels to carry out procedures and processes in a more expedite way, as well as tools to meet the planning and improving needs of the retirement stage. ” said Gerardo Chavarría, Business Initiatives and Commercial Consulting Manager at Afore SURA.
At Afore SURA we want to help people obtain a better pension at retirement and act today to achieve this through comprehensive advice and different savings and investment solutions. We hope these tips help you manage your resources in the best way so that you continue to achieve your life goals and build financial security for the future.
Press Contact:
SURA AM México
Jacqueline Briones
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CarralSierra
Lucía Jiménez
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