The Nobel Prize winner in Economics, Esther Duflo, asks Mexico to attend informal


By CAPosts 02 December, 2020 - 07:26pm 55 views

The reform to the pension system proposed by the federal government is on the right track, however "there is still the problem of informal workers," Esther Duflo, 2019 Nobel Prize winner in Economics, said on Wednesday. Duflo said that for this sector of the population can have a decent pension, access to individual retirement savings accounts is required to be easy and transparent

© The Nobel Prize recommends a savings scheme that is easy and transparent

'There must be selections predefined and automatic registration. Basically, if possible, everyone should be registered in an individual retirement account, 'said Duflo during his participation in the Amafore digital meeting. The second woman to be awarded the Nobel Prize in Economics in history also recommended automatic enrollment, as well as a scheme in which savers have a digital account on their mobile phone so that they can contribute resources that will be used for their pension, such as and as it happens in Agfanistan. "Afghanistan has implemented a telephone payment system, that is, an electronic wallet on people's phones," he said. The Afghanistan example was for formal employees, but Duflo felt that this could be done for informal workers, and there could be default settings for some of it to go directly to your retirement account. The Amafore had proposed a similar scheme for Mexicans in the formal sector to make voluntary contributions; however, this proposal was rejected by the federal government when presenting the pension reform initiative. Duflo said that to avoid poverty in the elderly, a non-contributory system is required, that is, a system that is available to everyone in the formal sector, that is automatic and with sufficient contributions for people to survive well with your pension. 'I think that in a country like Mexico is where they have the tension, since the more the formal retirement system is funded, the more a gap is created with the voluntary contribution system and, therefore, it is more likely that people will get out of that system and end up in the non-contributory system, 'he added.

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Source: MSN