Given that the cost of social security is rising due to the aging population, we should switch to other systems before it’s too late. That’s why I feel they should look at Mexico’s retirement system called AFORE (Administradora de Fondos para el Retiro in Spanish). An AFORE is a private financial institution that manages, invests, and safeguards your retirement savings.
When you work, the contributions made by your employer, the government, and yourself accumulate throughout your working life. Therefore, whether you work in the public or private sector, you can save money to maintain an income when you retire.
Retirement savings accounts (AFORES) invest workers’ money through Sociedades de Inversión Especializada en Fondos para el Retiro (SIEFOREs), which aim to maximize returns for you through investments regulated and supervised by the Comisión Nacional del Sistema de Ahorro para el Retiro (CONSAR), thus growing workers’ money.
SIEFOREs are generational; you are assigned one according to your birth year, as the investment strategy of these funds is determined by the time you have left until retirement.
And they generate a lot of money, because from January to June 2026, the 10 Afores in Mexico obtained a combined net profit of 8,968 million pesos (517.2 million dollars), the highest amount in real terms since 2021, according to data from the Comisión Nacional del Sistema de Ahorro para el Retiro (Consar).
Do you think a pilot program should be implemented to see if this ends up being viable for the USA?
No need to introduce an entire new program. I think we should simply stop taxing Social Security benefits as income, remove the upper limit of income after which the tax withholding stops growing progressively with your income, tax as income any loans you take out against investment securities, an institute a wealth tax (with 100% of this collected tax going to repay and slush fund borrowing that Congress has done against the Social Security trust funds until it’s all paid back).
