This report is one of a series of RAND reports describing the noncontributory pension program in Yucatan, Mexico; its implementation; its evaluation; and related topics. This report describes a pilot test of debit-card disbursal of pensions there and explores the results from several surveys of this pilot group.

Distributing Noncontributory Pension Benefits by Debit Card in Mexico

A Pilot Test

Emma Aguila, Abril Borges, Ashley Pierson, Rosalba Robles, Jose Eduardo Del Torno, Beverly A. Weidmer

ResearchPublished May 6, 2014

Cover: Distributing Noncontributory Pension Benefits by Debit Card in Mexico
Download PDF
Additional Downloads

Includes Appendixes

In an effort to improve the quality of life for older adults, the government of Yucatan, Mexico, and the RAND Corporation collaborated to design, implement, and evaluate a noncontributory pension program in Yucatan. Although the program initially distributed its monthly benefit in cash, it later selected a small group of recipients to receive the pension through a debit card. From March 2010 to February 2012, a pilot study was conducted in the city of Merida, the Yucatan state capital. The program paid monthly pensions of MXN $550 through deposits to a bank account established for each beneficiary that is linked to a debit card. This report is one of a series of RAND reports describing the noncontributory pension program in Yucatan, its implementation, its evaluation, and related topics. This report describes how the pilot test was conducted and explores the results from several surveys of this pilot group. Results indicated that debit-card pension disbursal is feasible for an elderly Mexican population and that the state should expand the number of beneficiaries receiving the benefit through the debit-card method.

Key Takeaways

Debit-Card Pension Disbursal Is Feasible for an Elderly Mexican Population

  • The debit-card disbursal mechanism appeared to make the program simpler to administer than a cash-based disbursal program.
  • Many pilot-group participants had initial doubts about the debit card, but, over time, many became more comfortable with it.
  • Many pilot-program participants reported that family members helped them use the cards or had used the cards on their behalf.
  • Some had problems using automated teller machines to withdraw their pensions, including not remembering how to use the machines and having problems with access.

Recommendations

  • Expand the number of beneficiaries receiving the benefit through the debit-card method.
  • Provide periodic training for beneficiaries on how to use automated teller machines.
  • Regularly check to ensure that recipients know how to access their pensions.

Topics

Document Details

  • Copyright: RAND Corporation
  • Availability: Web-Only
  • Year: 2014
  • Pages: 43
  • DOI: https://doi.org/10.7249/pubs
  • Document Number: TR-1288/7-SOY-NIA

Citation

Chicago Manual of Style

Aguila, Emma, Abril Borges, Ashley Pierson, Rosalba Robles, Jose Eduardo Del Torno, and Beverly A. Weidmer, Distributing Noncontributory Pension Benefits by Debit Card in Mexico: A Pilot Test. Santa Monica, CA: RAND Corporation, 2014. https://www.rand.org/pubs/technical_reports/TR1288z7.html.
BibTeX RIS

The research described in this report was made possible with funding from the government of the state of Yucatan, the U.S. National Institute on Aging (NIA), the RAND Center for the Study of Aging, RAND Labor and Population, and the Center for Latin American Social Policy (CLASP).

This publication is part of the RAND technical report series. RAND technical reports, products of RAND from 2003 to 2011, presented research findings on a topic limited in scope or intended for a narrow audience; discussions of the methodology employed in research; literature reviews, survey instruments, modeling exercises, guidelines for practitioners and research professionals, and supporting documentation; and preliminary findings. All RAND technical reports were subject to rigorous peer review to ensure high standards for research quality and objectivity.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.

RAND is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.