Mexico has experienced a significant shift toward formal savings and greater use of digital financial tools. Between 2021 and 2024, the share of adults with a retirement account rose from 35% to 42%, while adoption of online savings accounts and digital payment solutions tripled, according to the latest joint study by México, ¿Cómo Vamos? and Vanguard. This reflects broader progress in financial inclusion, as the share of adults with at least one formal financial product (savings account, credit, insurance, or AFORE) increased from 67.8% to 76.5% over the same period.

Juan Hernández, Director for Latin America, Vanguard, described the 2020 reform as “a historic milestone” that expanded mandatory savings and strengthened the retirement system. The reform increased employer contributions, enhanced guaranteed pensions, and introduced generational funds to align investment strategies with workers’ ages.

“Mexico has built a more robust and sustainable framework for formal workers,” Hernández said. “But we must remember this only reaches half the labor force. The informal sector still lacks adequate coverage, which remains a major social and financial challenge.”

The study also highlights rapid digital adoption: the share of people managing formal savings through a mobile app surged from 64% in 2021 to 82.6% in 2024. Meanwhile, the use of non-bank internet or app-based accounts, such as Mercado Pago or Nu, for formal savings nearly tripled, from 4.1% to 12.1%.

Despite these advances, only 7.9% of individuals with a retirement account made voluntary contributions in 2024, an improvement from 5.7% in 2021 but still low overall.

“There remains a strong cultural barrier,” said Sofía Ramírez, Director, México, ¿Cómo Vamos?. “Many people assume mandatory savings or government pensions will be enough, when in reality, adequate replacement rates should range from 70% to 85% of pre-retirement income. In 2024, only 50.3% of the population identified pension income—from retirement accounts, AFOREs, or private plans—as a source to cover old-age expenses.”

The main reason cited for not making voluntary contributions is insufficient income (38.3% of men and 41.2% of women). Nearly as many respondents pointed to financial education barriers, such as not knowing what contributions are or how to make them (20.3% of men and 25.1% of women), or not understanding their benefits (15.2% of men and 12.4% of women).

Gender and income disparities remain significant. Among adults aged 18–70, the gap in access to a formal retirement account or AFORE reached 17.2 percentage points in 2024: 51.4% of men had an account, compared with only 34.2% of women.

“This is not just a savings problem, it is a labor market problem,” Ramírez added. Structural factors explain much of the gap:

• Low female labor participation: 46.4% for women versus 75.3% for men, a gap of 28.9 percentage points.
• Higher informality: 54.9% for women versus 53.9% for men, meaning that roughly 55 of every 100 female workers and 54 of every 100 male workers lack access to social security and AFORE contributions.

Employment type remains the most decisive factor for retirement savings. In 2024, 87% of formally employed individuals had an AFORE account, compared with only 34% of informal workers.

Experts from both institutions emphasized that public awareness and collaboration among regulators, the private sector, and fintech companies will be key to expanding pension coverage. Hernández noted that fintech innovation can play a central role by offering automated savings tools and simplified investment options, particularly for independent and informal workers.

“The foundation is there,” Hernández concluded. “The next step is to connect formal reforms with real financial well-being for all Mexicans.”

Source: mexicobusiness