Government pension funds for older citizens in Mexico are anticipated to total 339 billion pesos in 2023, a 25% increase from the previous year.

The pension program's 11 million registered individuals will each receive 4,800 pesos (about $247) every two months, Mexico News Daily reported.

In the year 2021, an annual increase of 25% was announced by Mexican President López Obrador until 2024, at which point the amount given to each individual would be about 6,000 pesos every two months. The payments amounted to 3,800 pesos per person in 2022.

The payments per recipient were 1,160 pesos in 2018, the year President López Obrador took office.

Seniors can currently be paid through both private banks and the government-owned Banco del Bienestar, according to President López Obrador, who said this during his morning press conference on Tuesday (Bank of Well-Being).

For the time being, cash payments will still be accepted by recipients in rural areas without access to banks. During the second half of the year, however, the cash payments will be replaced with payments through the government-owned bank, the president said.

By the end of the month, the number of Banco del Bienestar locations will likely increase to 3,000 from the present 2,500.

The goal of Banco del Bienestar is to provide money to outlying regions that aren't served by private banks. However, it has had financial issues, and it is anticipated that the installation of more branches will make matters worse.

Ariadna Montiel Reyes, Minister of Well-Being, estimates that 52.6 billion pesos would have been distributed by the end of the first two months of the year. Depending on the first letter of the recipient's last name, funds will be dispersed on particular dates.

Previously, payments were sent on a single day, but now they will be spread out over five days, from Jan. 4 to Jan. 10, to prevent overloading the banks with clients.

The pension in Mexico is calculated taking into account the amount saved by the worker in the AFORE (Administradoras de Fondos para el Retiro) and the average lifespan. From this calculation, a monthly pension from the saved amount will be paid over the rest of his or her life. To enhance the pension, each worker can make voluntary contributions to the AFORE.

The Mexican flag flies over the Mexico City Metropolitan Cathedral in Constitution Square. JOHN COLETTI

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