Mexico retirement income: a worked example

Invented figures, not official pension rates. Ages are scenario inputs, not eligibility ages. This tool does not calculate Ley 73, Ley 97 or Modalidad 40 outcomes.

What does this example show?

With spending of MX$25,000 a month, an entered pension of MX$15,000 from age 65, and no investment growth or inflation, the plan needs MX$4,500,000 at age 60 to last until age 90. Of that, MX$1,500,000 covers the period before the pension starts.

Load this example

Prepare the Mexico inputs

Use an IMSS, ISSSTE or provider estimate to plan retirement spending in Mexican pesos. Separate pension income from AFORE assets that fund the same benefit. IMSS provides pension services including Mi Pensión Digital and a route to an estimated amount. Your own coverage and pension regime matter. This calculator does not choose between regimes or calculate credited weeks, salary bases or contribution options.

Read the country guide and input checklist

Every assumption in the baseline

Current age / stop working: 60 / 60
Plan until age: 90 (exclusive)
Accessible savings at retirement: MX$4,500,000
Further saving: MX$0 per month
Spending after tax: MX$25,000 per month
Entered pension after tax: MX$15,000 per month, age 65 onward
Other income streams: MX$0
Net nominal return / inflation: 0% / 0% per year

All figures use today's purchasing power. The pension is an illustrative recurring payment. The model does not assess eligibility, taxes, access restrictions or a benefit increase for claiming later. The example uses zero return to make the arithmetic easy to reproduce; zero is not a return forecast.

Follow the two periods

Age 60 to 65: savings cover all spending.
5 years × 12 months × MX$25,000 = MX$1,500,000.
Age 65 to 90: the pension covers part of spending.
Monthly gap = MX$25,000 − MX$15,000 = MX$10,000. Over 25 years, savings supply MX$3,000,000.

Total capital needed: MX$1,500,000 + MX$3,000,000 = MX$4,500,000. At a nonzero return, the calculator discounts each monthly gap. It never borrows against future pension income.

Change one assumption

Same starting savings and spending, different timing · MXN
Scenario	Capital needed	Additional capital needed	Try it
Baseline bridge	MX$4,500,000	MX$0	Load scenario
Pension starts one year later	MX$4,680,000	MX$180,000	Load scenario
Plan for five more years	MX$5,100,000	MX$600,000	Load scenario

Delaying the same pension by one year increases the required savings by MX$180,000. Planning five years longer adds MX$600,000. Actual later-claiming benefits may differ: get a new official estimate before using a real alternative date.

What this leaves out

A retirement account can help fund the pension you enter. Do not add its full balance to accessible savings if that capital is also producing the pension. Ask the provider which amounts can actually be withdrawn separately and on what date.

The result is a deterministic illustration with no market volatility, changing taxes, care-cost shock or inheritance target. Payments remain constant in real terms, which may overstate a pension that does not keep pace with prices. Three income streams are available; combine payments only when their dates and money basis match.

The first twelve-month budget in the calculator solves for a fundable spending level. It is a separate result from your entered target. In a stressed scenario it can be lower than the target; the capital-gap table above keeps the original spending target unchanged.

Official sources and review scope

Source descriptions checked 4 October 2026. This is an illustrative calculation, not a government benefit forecast. Read our editorial policy and review status.

Start with the calculator's default inputs · Calculation method · Report a correction