Slim's Vision on Retirement Spending and the Fight Against Poverty

Carlos Slim, one of the most influential billionaires in the world, expressed his disagreement with the significant amount of money allocated to pensions in Mexico instead of focusing on eradicating poverty in the country.

The businessman pointed out that to achieve internal peace and peaceful relations among nations, it is crucial not only to reduce poverty but to eliminate it completely. He emphasized the importance of cutting certain expenditures, including military spending and funds allocated for retirees. “There shouldn’t be discussions about equality or inequality; it’s essential that there’s a minimum level of well-being for the entire population. It’s astonishing (...) that in Mexico we are providing such resources to retirees while there are 6 million people living in extreme poverty, which is utterly illogical,” Slim commented during the World Summit of Nobel Peace Prize Laureates. In his view, the current government spending aimed at increasing retirees' pensions is misdirected and should be exclusively allocated to those who truly have low incomes. “Support for seniors ranges from 4,000 to 6,000 pesos, but it should only be given if they have a minimum income. These resources should be directed at combating extreme poverty,” he argued. Additionally, he highlighted that insecurity restricts people's freedoms and is a factor that does not contribute to peace. To conclude, he urged countries to work towards family cohesion and social harmony in order to build more united and creative societies. According to data from Coneval, in 2020, 43.9% of the population in Mexico lived in poverty. However, seniors over 65 faced this situation to a lesser extent, at 37.9%, compared to 44.5% of the younger population. In terms of extreme poverty, the outlook was more encouraging for those over 65, with only 6.7% in this situation, compared to 8.5% overall. It is projected that by 2030, spending on pensions in Mexico will represent 7.8% of GDP, according to estimates from the Center for Economic and Budgetary Research, more than double what the government currently allocates to education.

Slim’s reflections on the distribution of spending are an important call for decision-makers to consider how public resources can be optimized. Channeling funds toward the most vulnerable groups can not only mitigate poverty but also foster more balanced and sustainable economic development in the long run. Restructuring public spending could be key to improving our economy and strengthening the social fabric in Mexico.