Retirement Age Men & Women in Mexico | Take-profit.org (2024)

FAQs

What is the mandatory retirement age in Mexico? ›

Due to the pension reform approved in December 2020, the Normal retirement age is 65 for men and women, depending on a contribution period of 750 weeks (around 14.4 years) in force since year 2021, this period will be increasing 25 weeks per year until it remains in 1 000 weeks, for the private sector.

The good news is it's estimated that $2,500 per month for one couple would afford a very comfortable lifestyle, covering your home, transport, and private health insurance.

Average Cost to Retire in Mexico

A retired couple can expect to retire comfortably in Mexico with an average income of about $2,500 a month, or $30,000 a year, according to InternationalLiving.com. These figures include the cost of a house, a maid service, utilities, groceries, entertainment, health insurance and more.

Most U.S. citizens can get Social Security benefits while visiting or living outside the U.S. Find out if you qualify, how to apply, and who to contact to get help.

At present, Mexicans can retire at 65, if they have worked 38 1/2 years, or 67 if they haven't. But there is no guaranteed pension payment.

The institution in charge of social security in Mexico is the Mexican Social Security Institute, commonly known as IMSS, because of its name in Spanish (Instituto Mexicano del Seguro Social). Therefore, IMSS' mission is to provide medical attention and social security to all Mexican workers.

Key Takeaways. The cost of living in Mexico is 45.7% lower than in the U.S. You can thus get by on $600 to $2,000 a month. From rent to groceries, utilities to an internet connection, and dining out to transportation, everything is more affordable in Mexico compared to the U.S.

The city in Mexico considered the safest with the lowest crime rate is Merida, located in Yucatan. This is also one of the most affordable cities in Mexico, making it a popular destination for retirees and expats. Merida's low crime rate makes it an excellent choice for visiting and living in.

The best places for retirees in Mexico are Ixtapa-Zihuatanejo, Lake Chapala, Los Cabos, Playa del Carmen, Puerto Vallarta and San Miguel de Allende. Monthly living costs for retired couples in Mexico will vary by location, ranging from $1,315 to $2,900.

How much do you have to earn in a month to be considered rich in Mexico? In order to be considered as part of the A/B Social Economic Level (the highest present in Mexico) you have to earn an average of 120,000 pesos a month. That is around 6,000 dollars a month or 72,000 dollars a year.

How much does a house cost in Mexico? ›

Data provided by the Federal Mortgage Society, shows that the average house price in Mexico has increased to $90,850 in the first quarter of 2023, up 11.7% against the same period last year.

The price of many necessities is significantly less than in the United States. It is estimated that a single person will spend about MXN 10,733 per month, which is equivalent to USD $626, while a family of four will spend about MXN 38,636 per month, which is equivalent to about USD $2,254.

Mérida – The Safest City in Mexico

Nestled inland on the Yucatán Peninsula only 40 minutes from the beautiful beach town of Progreso, Mérida is an emerging expat destination. Since the US Department of State considers Yucatán state to be the safest, residents can live life in Mérida without constant worry.

Estimated Costs To Retire in Mexico

For permanent residency, applicants need proof of $4,300 to $4,500 in monthly income over the past six months or a minimum $180,000 savings balance each month for the past year.

Withdrawals from your U.S. retirement accounts are taxable in both the U.S. and Mexico unless you're considered a non-resident for Mexican tax purposes (see above).

(1) Any employee who has attained 65 years of age and who for the two year period immediately prior to retirement, was employed in a bona fide executive or high policymaking position, providing that at the time of mandatory retirement, the employee is entitled to receive an immediate non-forfeitable annual retirement ...

In America, a typical retiree spends $4,345 on average, whereas the cost of living in Mexico for a single person can vary between $600 to $2,000 a month. Many expats report living comfortably in many areas of Mexico for $1,500 a month as well. The country can be pretty easy to live in.

The full retirement age is 66 if you were born from 1943 to 1954. The full retirement age increases gradually if you were born from 1955 to 1960 until it reaches 67. For anyone born 1960 or later, full retirement benefits are payable at age 67.

The Social Security Rate in Mexico stands at 9.23 percent. Social Security Rate in Mexico averaged 10.52 percent from 1981 until 2022, reaching an all time high of 17.63 percent in 2000 and a record low of 0.00 percent in 1981. source: Mexican Social Security Institute.