Planning is a very important element in practically all areas of life, and when it comes to pensions, it can be much more so. One case, for example, is the age to retire for mode 40 of the Mexican Social Security Institute (IMSS).
As we have previously told you in Debate, the Voluntary continuation of the Mandatory Regime, Better known as IMSS Modality 40, it is a scheme that allows you to add weeks of contributions, but with a higher salary, and thus increase your pension.
We have also reiterated that it is through this pension scheme, those who really benefit are those who belong to the 1973 Social Security scheme. It is important that you know the differences between Law 73 and Law 97.
However, before planning to sign up for Modality 40, you must have seen that you have the ideal profile so that your investment really translates into a better pension. This will depend, to a large extent, on the percentage of listed weeks you have and your ability to pay.
Best age to register in Modality 40:
Regarding the topic of The best age to register in Modality 40it has to be in the last 250 weeks before you retire, whether you want to retire at 60 or up to 65 years of age.
What we generally tell you is that, if you are already within that period of the last 250 weeks – period that is taken into account to average your pension – The best thing is that the sooner the better.
And this has to do with something very basic, the cost of modality 40 will increase year after year, until 2030. This means that, If you can sign up now, do it, because year after year you will be more expensive, as we show you here:
Cost of Modality 40 in 2023 and until 2030:
- 2023 – 11.166% of registered salary
- 2024 – 12.256% of registered salary
- 2025 – 13.347% of registered salary
- 2026 – 14.438% of registered salary
- 2027 – 15.528% of registered salary
- 2028 – 16.619% of registered salary
- 2029 – 17.709% of registered salary
- 2030 – 18,800% of registered salary
In addition to the above costs, remember that one of the factors that determine the cost of modality 40 They are the UMAS, which are increasing every year.
For example, in 2023 the value of the UMA is $103.74 pesos a daywhich if you quote capped at 25 UMAS per day, would be equivalent to $2,593.50 pesos.
If you wanted to contribute capped in modality 40 in 2023, according to 11,166 percent of the salary registered for this year, per month you would pay one fee of $8 thousand 803.55 pesos.
Prepare ahead of time to enter Modality 40:
Ideally, from the age of 50 or even earlier, start planning of modality 40, start saving money and continue adding weeks of contributions so that when you reach the years of contributing, you can invest a good amount.
In any case, what we recommend, now and always, is Get advice from a specialist so that you are clear about several points, among them, what your pension would be like without modality 40 and what it would be like if you were to register.
This is very elementary, since there are cases in which the investment effort that is made pays off in very little benefit. There are even cases in which the 40 modality is simply not suitable, so you should know it.
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