The Urgent Need for Reverse Mortgages to Support Elderly Citizens in Mexico

in mexico none financial entity offers the reverse mortgage, mechanism that provides liquidity for seniorsdespite the fact that 59 percent of them will not have a pension derived from social security.

This is how he reported it Alejandra Macias, CEO of Center for Economic and Budgetary Research (CIEP) in your report Reverse mortgage in Mexicowhere he explains, according to figures from 2019, that of the 10.3 million older adults that exist in the country, only 41 percent will reach a pension derived from the social Securitythe rest will be forced to work in their old age.

He stressed that the reverse mortgage can be a decumulation instrument that allows offering liquidity to the elderly to increase their income as a complement to a pension.

However, despite the fact that this instrument has existed in Europe since 1965, in Mexico only two federal entities have regulations to implement it, and federal regulation is still lacking.

He pointed out that the monthly amount of the reverse mortgage in CDMX can be 52 percent higher than the average contributory pension and 10 times more than the non-contributory pension.

It revealed that pension spending represented 20.4 percent of total spending in 2023, so alternatives must be studied so that the growth of these resources can be contained.

CORN