Concern is increasing about financial futures and retirement savings in Mexico.

Concerns about financial future and retirement savings are increasingly relevant topics in Mexican society. As life expectancy rises, so does the need for a solid economic backup in old age, making it imperative for each individual to take responsibility for their own retirement. Paulina Casso, author of the book "WTF with Retirement," emphasizes that the key lies in each person being aware of their role in this process, rather than blindly trusting the Retirement Fund Administrators (Afores), the government, or family. Casso warns that while Afores represent a significant advancement in retirement savings, they should not be seen as the only solution. According to her statements, workers who do not make voluntary contributions and rely solely on the mandatory savings allocated to their Afore will end up receiving only 30% of their last salary upon retirement. The reform to this pension system, which promises to increase employer contributions to 15% by 2030, will still be insufficient to guarantee a comfortable future. The author proposes that, in addition to relying on Afores, individuals should seek ways to complement their savings. Casso highlights the importance of considering investment instruments that provide returns, as well as the possibility of establishing a Personal Retirement Plan (PPR). "Saving under the mattress or in a traditional bank account are not viable options in the current context," she emphasizes. Time is a critical factor in retirement savings. The earlier one starts saving, the better prepared they will be for this stage of life. According to Casso, the best time to start planning and saving is right now. Using savings calculators can be very helpful in determining the amount that needs to be contributed from now on to reach the desired goal in the future. However, saving alone is not enough. Casso stresses that it is imperative for savings to be complemented with investments that outpace inflation. Many people make the mistake of living beyond their means, preventing them from allocating a portion of their income to savings. The author reminds us that retirement doesn’t have to mean deprivation; rather, there should be a balance that allows enjoying the present while securing the future. A fundamental aspect of financial planning is creating a budget. This allows for clarity regarding monthly income and expenses, and Casso recommends allocating at least 30% of income to savings. Establishing an emergency fund is crucial before starting to invest, as it provides a safety net against unforeseen events. For those who feel they cannot save due to their expenses, Casso suggests reviewing unnecessary expenditures. Small luxuries, such as going to the movies or enjoying a daily coffee, can add up to more than one might imagine, and cutting back in these areas can free up the necessary amount to start saving. Choosing the right Afore or financial institution is vital for successful savings. Casso recommends looking for entities that are registered and regulated, and that offer transparent information about returns and fees. A lower commission percentage can translate into better long-term returns. Finally, the author encourages everyone to ask questions and clarify doubts before signing any contract. Financial education is key in this process, and every decision should be made with as much knowledge as possible about the implications of each investment option. With a proactive approach, each individual has the power to build a more secure and satisfying financial future, and it is time for everyone to take this responsibility seriously and with determination.