Pension Reform in Mexico: The Evolution of Pension Fund Management Fees and Their Effect on Pension Balances

42 Pages Posted: 5 Feb 2009

See all articles by Emma Aguila

Emma Aguila

RAND Corporation; University of Southern California - Schaeffer Center for Health Policy and Economics

Michael D. Hurd

RAND Corporation; State University of New York at Stony Brook - College of Arts and Science - Department of Economics; National Bureau of Economic Research (NBER)

Susann Rohwedder

RAND Corporation

Date Written: September 2008

Abstract

In 1997 Mexico introduced Personal Retirement Accounts (PRAs) which, after a transition phase, will completely replace the pay-as-you-go (PAYG) system. We give a detailed overview of the relevant institutional framework, the market of PRA providers and how it has evolved since the 1997 reform. We use administrative data obtained from CONSAR, the regulatory agency of the PRA system to assess how pension fund management fees affect pension accumulations. We find that fees can drain up to a quarter of individuals' pension savings.

Suggested Citation

Aguila, Emma and Hurd, Michael D. and Rohwedder, Susann, Pension Reform in Mexico: The Evolution of Pension Fund Management Fees and Their Effect on Pension Balances (September 2008). Michigan Retirement Research Center Research Paper No. 2008-196, Available at SSRN: https://ssrn.com/abstract=1338193 or http://dx.doi.org/10.2139/ssrn.1338193

Emma Aguila (Contact Author)

RAND Corporation ( email )

1776 Main Street
P.O. Box 2138
Santa Monica, CA 90407-2138
United States

University of Southern California - Schaeffer Center for Health Policy and Economics ( email )

635 Downey Way
Los Angeles, CA 90089-3333
United States

Michael D. Hurd

RAND Corporation ( email )

P.O. Box 2138
1776 Main Street
Santa Monica, CA 90407-2138
United States
310-393-0411 (Phone)
310-393-4818 (Fax)

State University of New York at Stony Brook - College of Arts and Science - Department of Economics ( email )

Stony Brook, NY 11794
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Susann Rohwedder

RAND Corporation ( email )

P.O. Box 2138
1776 Main Street
Santa Monica, CA 90407-2138
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
113
Abstract Views
869
rank
299,912
PlumX Metrics