By Jacqueline L. Angel & Emma Aguila

Population aging is complicating retirement planning for Americans, and specifically for immigrants. As a 2017 National Academy of Science study showed, Mexican immigrants who arrive at older ages often struggle to support themselves in the United States and often consider returning home. Yet we lack a binational retirement policy that addresses those concerns.

We need bilateral agreements that enable Medicare coverage in Mexico, and a Social Security “totalization” agreement allowing Mexican workers in the United States to earn Social Security credits for work in Mexico and the United States. Such solutions would expand retirement planning options for workers with increasing life expectancies. The United States and Mexico share a border that is among the most frequently crossed in the world by migrants seeking labor. Yet, while these two nations have Social Security totalization agreements with dozens of other nations, they do not have one with each other.

Simply put, a binational retirement policy would ensure retirement security for a population with limited resources that is at high risk of protracted periods of illness. Work and immigration remains controversial in the United States, but there is a growing recognition of the U.S. worker shortage and how Latin American workers can help solve it. Congress should address the needs of these populations, who will contribute to this country and who may later seek to retire elsewhere, including their native lands.

In 2020, 13 percent of Americans age 60 and older had no retirement savings. Retirement savings are even less prevalent among younger and immigrant workers. This means that a large proportion of future retirees will depend on Social Security for most or all of their retirement income. Among Mexican retirees, a modest retirement income is more likely to support an acceptable standard of life in Mexico than in nearly any U.S. city.

Our research shows Mexican immigrants are poorer and less educated than Mexican Americans. They tend to work in jobs that may not provide access to Social Security benefits, or have legal status that prevents claiming Social Security or Supplemental Security Income benefits. Many, especially those who speak only Spanish, do not understand how Social Security programs work. The U.S. Social Security Administration is expanding outreach efforts to improve financial literacy among Hispanics.

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