AMLO Adjusts Pension Age, Commits To Doubling Sum Received

Yesterday, President AMLO announced Mexico's pension age will be lowered to 65 from 68. He also committed to doubling the current sum received by retirees by 2024.

• Mexico's annual budget for senior citizen pensions will increase from 135B pesos this year to 240B in 2022, 300B in 2023, and 370B in 2024, AMLO said. The pension increases will benefit circa 10 million people and importantly will not require additional debt or taxes, he said.
• The announcement comes just two months before the midterm elections.
• Citi note that together with his infrastructure projects, these cash transfer programs represent the core of Amlonomics, and are an important factor behind his continued high approval.
• Separately, Ruling party lawmaker Alfonso Ramirez Cellar, who heads a group studying tax issues in Mexico's lower house, said he's proposing a one-time wealth tax on the fortunes of some 160,000 people that could contribute up to 100 billion pesos in revenue, Milenio newspaper reported on Sunday, citing an interview.
• With budgetary pressures expected to intensify, Finance Minister Herrera has hinted at upcoming fiscal reforms. The proposal above will be discussed as part of the talks, with a reform package expected to be presented by Aug. 15 and taken up by the next Congress.