Mexico’s richest man has proposed the end of welfare and public pensions, arguing the programs drain resources without reducing poverty.
Carlos Slim Helú, whose fortune stands at about $81 billion, made the comments during the World Summit of Nobel Peace Laureates in Monterrey. The 84-year-old telecommunications magnate said Mexico’s current subsidy system fails to address structural problems like inequality and sluggish economic growth.
“The GDP has grown barely 1% in 3 decades, which makes it unviable to continue allocating thousands of millions to programs that don’t reduce extreme poverty,” Slim told the gathering of Nobel laureates and global leaders at the September event.
The proposal targets 2 major programs. The Bienestar Pension for Older Adults provides 6,200 pesos ($305) every 2 months to Mexicans 65 and older. More than 12 million people receive the benefit, which is enshrined as a constitutional right. The IMSS system covers formal sector workers through employer and employee contributions.
Slim’s alternative focuses on job creation instead of direct transfers. Rather than handing cash to seniors, he wants the government to invest in projects that generate productivity and formal employment. He suggested creating conditions for older adults to keep working and contributing economically.
“We have to change the weapons and other spending for minimum levels of well-being for the population,” said the owner of Grupo Carso. His companies span telecommunications, energy, retail and construction across Latin America.
The billionaire called the existing pension schemes “irrational,” saying they foster dependency rather than economic development. Mexico must build an active economy that allows seniors to remain productive and financially independent, he argued.
His comments come as pension costs climb rapidly. Public spending on pensions rose to 5.7% of GDP in 2024, up from 3.4% in 2018, according to international financial institutions. The increases absorbed fiscal space that previous administrations split between social programs and infrastructure investment.
Slim also emphasized security’s role in prosperity. “When there is insecurity there is no freedom,” he said, adding that strengthening families and values are essential for national stability.
The proposal drew on Mexico’s ongoing economic challenges. The country ranks among the world’s most unequal nations, with the top 10% earning more than 30 times what the bottom half makes. That pattern plays out starkly in states like Yucatán, where Mérida’s wealth contrasts sharply with rural poverty rates above 38% in some municipalities.
Critics of Slim’s approach note that his fortune has grown substantially during recent administrations through government contracts and partnerships with state-owned enterprises. His investments in energy projects with Pemex and infrastructure developments have positioned him as a key player in Mexico’s economy.
The debate reflects broader tensions in Mexican policy. Life expectancy continues rising while the working-age population shrinks relative to retirees. Most other nations have raised retirement ages or reduced benefits to address similar demographic shifts. Mexico has moved in the opposite direction, expanding both coverage and payment amounts.
Slim received the prestigious Peace Summit Award during the Monterrey gathering, which brought together more than 4,000 participants including Nobel laureates Óscar Arias Sánchez, Shirin Ebadi, Kailash Satyarthi, Rigoberta Menchú and Lech Walesa.
The proposal faces steep political hurdles. The Bienestar pension enjoys broad popularity and constitutional protection. Any changes would require congressional approval and likely constitutional amendments. President Claudia Sheinbaum’s administration has signaled plans to continue social spending programs while pursuing fiscal consolidation.
About the Bienestar Pension
- Universal benefit for all Mexicans 65 and older
- Pays 6,200 pesos ($305) every 2 months in 2025
- Serves more than 12 million beneficiaries
- Protected as a constitutional right since 2019
- Costs government approximately 544 billion pesos ($26.7 billion) annually across all welfare pension programs
- No income requirements or means testing
- Delivered directly through Banco del Bienestar debit cards
Sources: Sipse, IMF, World Summit of Nobel Peace Laureates, Secretaría de Bienestar, Forbes, Bloomberg, Pension Policy International