# Banking FDIC and Retirement programs in Mexico



## alanrudy (Aug 7, 2013)

Hello,

I was interested in more information on how the banking system and retirement works in Mexico. I am 33, coming from the US, and am thinking strongly about making a permanent move to Tijuana or Rosarito, Mexico. My questions are:

1. If I wanted to do all my banking in Mexico, is there some kind of guarantee (like FDIC insurance in the states) that my money will still be there?

2. If I obtain employment and work long enough, is there a retirement system similar to SS in Mexico?

Thanks in advance for your help.


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## TundraGreen (Jul 15, 2010)

alanrudy said:


> Hello,
> 
> I was interested in more information on how the banking system and retirement works in Mexico. I am 33, coming from the US, and am thinking strongly about making a permanent move to Tijuana or Rosarito, Mexico. My questions are:
> 
> ...


In answer to #1, I believe the answer is yes, but I don't know the details.

In answer to #2, the answer is also yes. Instituto Mexicano del Seguro Social (IMSS) is similar to a combination of the Social Security Administration plus Medicare for all employees. Unlike the US the Medicare is not restricted to seniors. IMSS will pay a pension after you retire. I do not know the details. I only have a single point of information about the benefits; one friend gets $10,000 or $15,000 pesos/month equivalent to about $10,000 or $15,000 US dollars/year.


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## maesonna (Jun 10, 2008)

There are also pension funds called Afores (acronym for Retirement Fund Administrators in Spanish). There is not much info about them in English, but there is a brief Wikipedia article, at least. There is also a 4-page pdf by Citibank in English, although it is oriented towards the point of view of potential foreign investors. You can search for it with the following phrase: “Mexican funded pensions known as afores”. There are plenty of websites in Spanish explaining Afores and giving further information.


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## RVGRINGO (May 16, 2007)

Have you checked the requirements for permanent residence in Mexico? You must go to your nearest Mexican consulate to apply. A tourist may not work in Mexico. A temporary resident would require permission from the INM entered upon the visa. There are financial requirements.


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## alanrudy (Aug 7, 2013)

Thanks Tundragreen and others for the answers, I still am unsure on #1, does anyone know for sure? That's great to hear about the ss system.


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## sparks (Jun 17, 2007)

alanrudy said:


> Thanks Tundragreen and others for the answers, I still am unsure on #1, does anyone know for sure? That's great to hear about the ss system.


The issue is .... if you reach the point of being able to work legally (not easy to do) you'll be working for peanuts and retirement will be worse. Re think the whole idea


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## RVGRINGO (May 16, 2007)

Either way, I suggest that you use the US banking system. It is easy to do your banking online and to use ATMs for cash. Mexico is a cash economy and we have found no real need for the inconvenience or expense of a Mexican bank.


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