Pension Reform in Mexico: The Evolution of Pension Fund Management Fees and their Effect on Pension Balances
In 1997 Mexico introduced Personal Retirement Accounts (PRAs) which, after a transition phase, will completely replace the pay-as-you-go (PAYG) system. We give a detailed overview of the relevant institutional framework, the market of PRA providers and how it has evolved since the 1997 reform. We use administrative data obtained from CONSAR, the regulatory agency of the PRA system to assess how pension fund management fees affect pension accumulations. We find that fees can drain up to a quarter of individuals’ pension savings.
|Date of creation:||Sep 2008|
|Contact details of provider:|| Postal: P.O. Box 1248, Ann Arbor, MI 48104|
Phone: (734) 615-0422
Fax: (734) 647-4575
Web page: http://www.mrrc.isr.umich.edu/publications/papers/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Carlos Vidal & José E. Devesa- Carpio & Mónica Martínez, 2000. "Análisis Y Valoración De Los Sistemas De Pensiones Reformados En Latinoamérica," Working Papers. Serie EC 2000-11, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Alberto Arenas de Mesa & David Bravo & Jere R. Behrman & Olivia S. Mitchell & Petra E. Todd, 2006. "The Chilean Pension Reform Turns 25: Lessons From the Social Protection Survey," NBER Working Papers 12401, National Bureau of Economic Research, Inc.
- Olivia S. Mitchell, "undated". "Evaluating Administrative Costs in Mexico's AFORES Pension System," Pension Research Council Working Papers 99-1, Wharton School Pension Research Council, University of Pennsylvania.
- Solange Berstein & José Luis Ruiz V, 2005. "Sensibilidad de la Demanda con Consumidores Desinformados: El Caso de las AFP en Chile," Working Papers 4, Superintendencia de Pensiones, revised Apr 2005.
- Shah, Hemant, 1997. "Toward better regulation of private pension funds," Policy Research Working Paper Series 1791, The World Bank.
- Emma Aguila, 2008.
"Personal Retirement Accounts and Saving,"
600, RAND Corporation.
- Indermit S. Gill & Ceren Ozer & Radu Tatucu, 2008. "What Can Countries in Other Regions Learn from Social Security Reform in Latin America?," World Bank Research Observer, World Bank Group, vol. 23(1), pages 57-76, January.
- MoisÃ©s J. Schwartz & Enrique E. DomÃnguez & Roberto CalderÃ³n-ColÃn, 2008. "Consumer Confusion; The Choice of AFORE," IMF Working Papers 08/177, International Monetary Fund.
- Alberto Arenas de Mesa & Carmelo Mesa-Lago, 2006. "The Structural Pension Reform in Chile: Effects, Comparisons with Other Latin American Reforms, and Lessons," Oxford Review of Economic Policy, Oxford University Press, vol. 22(1), pages 149-167, Spring.
- Rodrigo Gutierrez & Pablo Serra & Ronald Fischer, 2003. "The Effects of Privatization on Firms and on Social Welfare: The Chilean Case," Research Department Publications 3150, Inter-American Development Bank, Research Department.
When requesting a correction, please mention this item's handle: RePEc:mrr:papers:wp196. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (MRRC Administrator)
If references are entirely missing, you can add them using this form.