How much could I get from pension if I quote only one year?

Modality 40 of the IMSS allows workers to improve their pension by paying a higher amount during the last 5 years, however, many wonder if it is possible to obtain an improvement in the amount of the pension by contributing only one year. The Voluntary Continuation of the Compulsory Regime, as Modality 40 is legally named, allows workers registered in the Social Security Law of 1973 to make voluntary contributions. By being a volunteer, it is possible to register with a higher salary to improve what will come to you after your retirement. It is extremely important to know that the Mexican Social Security Institute (IMSS) takes into account the last 250 weeks or 5 years are very significant for the amount of your pension. What is quoted during this period of time is averaged to obtain the final value of your pension.How to make my IMSS pension increase in Modality 40? For the pension to increase, some people seek to contribute the maximum allowed, this is 25 UMA for 5 years, this results in about 50 thousand pesos per month of pension. Therefore, when you only contribute one year, the increase will not be so significant if your other 4 years without Modality 40 contributed with a minimum wage. Conversely, if you have a large number of weeks quoted with a good salary registered with the IMSS, and you start contributing your last year with the maximum of 25 UMAs, your salary will have a significant increase. It is necessary to warn, that it will be much better to contribute for more years so that when averaging it generates a more significant salary improvement.How much would I get from pension if I only quote one year in Modality 40? Because each person will have a different case, it is best to perform a personalized calculation for each person. However, these examples might help you know more or less what it will be like. It is important to take into account that if you register for this voluntary scheme at 59 to retire at age 60, you would only be entitled to 75% of the pension. It is only possible to get the maximum of 100% if you work until you are 65 years old. Example 1: If during a year under Modality 40 you pay the maximum possible, which is 25 UMAs, you would be investing 88 thousand 217 pesos for your pension throughout the year. This would be 7 thousand 351 pesos monthly. Example 2: If you have registered a thousand weeks of contributions and you retire at age 60 registering in the last year with the 25 UMAs, your pension will be just over 8 thousand Mexican pesos each month. If, on the other hand, you continue to work or contribute the contributions until the age of 65, the pension would rise above 10,700 pesos per month. Example 3: Taking as a reference the previous example with the maximum, but with 1500 weeks quoted, your pension at age 60 would be higher than 12,800 pesos per month. On the other hand, if you continue working or contributing until the age of 65, your pension rises to 17 thousand pesos per month.



Original source in Spanish