I just read something interesting about pensions in Mexico, and I think it's worth sharing, especially if you're an IMSS worker. It turns out there's a scheme called Modalidad 40 that could increase your pension by up to 300% depending on your situation. Sounds good, but here’s the point: it’s not for everyone, and you need to understand well if it really benefits you.

To start, if you contributed to IMSS under Law 73 (—that is, before July 1, 1997 )—you have the option to make voluntary contributions to improve your pension. Basically, you can increase your credited weeks and your average Salario Base de Cotización. But as an investment advisor I interviewed says, Modalidad 40 isn’t magic. The monthly cost can reach 12,000 pesos or more if you want to maximize benefits, and that’s not affordable for everyone.

So, who does it really work for? According to experts, there are three key factors: how many weeks you’ve already credited, at what age you plan to retire, and what your average salary was. If you already have 1,000 weeks or more under Law 73, the chances that Modalidad 40 will help you are much higher. Someone with 1,500 credited weeks, a low Salario Base de Cotización but retiring at 65, could end up with a better pension than someone earning more but with fewer credited weeks and retiring at 60.

Here’s a concrete example: Leticia, a worker nearly 56 years old with 1,622 credited weeks. Without Modalidad 40, her pension would be 17,400 pesos per month at age 60. With the scheme, she expects to receive 66,500 pesos. That means she will invest around 800,000 pesos over 5 years of contributions, but she estimates she will recover that investment in just 12 months. That’s a case where it definitely makes sense.

Now, who doesn’t benefit from it? If you have few credited weeks (200 or 300), Modalidad 40 will probably only lead you to the guaranteed minimum pension. The system penalizes heavily when you have few weeks. Also, if you earn a very high Salario Base de Cotización, the improvement margin is limited by the cap of 25 UMAs ( measurement units ), so in those cases, a Personal Retirement Plan might be a better option.

Regarding costs: the contribution is 14.438% of the Salario Base de Cotización you choose to contribute with. The maximum is 25 UMAs, which equals 2,932.75 pesos per day. If you want to contribute at the maximum, you would pay between 11,856 and 13,126 pesos per month depending on the number of days in the month. There are lower options: if you contribute with 10 UMAs, it would be around 5,081 pesos per month.

The requirements to access are quite clear: you must be under Law 73, not have an employer registering you with IMSS (—even if you work independently )—and have at least 52 credited weeks in the last five years. If you stopped contributing a long time ago, you first need to switch to another scheme like Modalidad 10 and wait a year.

The general recommendation is to consult with an advisor who can analyze your specific situation under Law 73 before deciding. Numbers don’t lie, but each case is different. If you have enough credited weeks and can sustain the monthly payments, Modalidad 40 could be your best ally for a more comfortable retirement.