London Life Insurance Company used to heavily promote Freedom 55, suggesting that if one invested with London Life, retiring young would be a viable option. In Oaxaca, Mexico, 60 is the magic age for reaping the benefits of aging gracefully as a senior “citizen.”
The program known as INAPAM is a benefit of the federal government of Mexico. It enables expats and Mexican citizens alike to obtain discounts, and is therefore available to Canadians, Americans and other foreigners living anywhere in Mexico. Oaxaca is used for the purposes of this article simply because it is the city with which the writer is most familiar, and where he has availed himself of the perks of retiring at age 60 - discounts in the transportation and entertainment sectors of Mexican society, as well as in taxation.
The Logistics of INAPAM Explained to Those Contemplating Retirement in Oaxaca, Mexico
INAPAM, or Instituto Nacional de Las Personas Adultas Mayores (national institute of older adult persons), is available to all Mexicans as well as foreigners meeting certain requirements, upon attaining the age of 60. Accordingly, while reference was made above to senior “citizens,” one need not be a citizen of Mexico to qualify.
Expats resident in the city of Oaxaca must attend at the INAPAM offices on the north side of Calle Independencia west of Garcia Vigil, with the following documents: visa permitting residency in Mexico, or alternatively a permanent immigrant card known as INMIGRADO; passport; receipt indicating proof of home address such as telephone, hydro or water bill. Naturally, as is the case with pretty well all official documents being sought for an expat in Mexico, one is advised to attend with originals as well as copies (in the case of the passport, the page with photo, passport number, date of birth and expiration date is sufficient).
Since INAPAM in Oaxaca only accepts the first 70 people per day who attend at its offices for a new card or to advise regarding a change in the individual’s circumstances, it is suggested than one not attend after 10 a.m. Regarding notification of a change, as is the case with maintaining residency or designation as an immigrant in Mexico, to keep one’s INAPAM status in good standing it is important to advise the authorities of any change in address. Inquire of the INAPAM staff to ascertain any other changes which must be brought to its attention.
Some of the Benefits Sponsored by INAPAM for Senior “Citizens” Retiring in Oaxaca, Mexico
First class bus tickets for INAPAM members are discounted by 50%, meaning that instead of paying 726 pesos for the ultra luxury Platino ADO bus service, the cost of travel from Oaxaca to Mexico City, for example, is only 363 pesos, or about $30 USD. There are a limited number of seats allocated for INAPAM, so don’t wait until the last minute. On the other hand, given the Mexican mañana perspective, a couple of weeks in advance should not result in any difficulty.
Some domestic airlines also offer discounts to senior citizens. Aerotucan offers a 10% discount. While the amount appears modest, it does mean that for example, the high cost of flights between Oaxaca and the Pacific beach towns of Huatulco and Puerto Escondido becomes a little more palatable and perhaps weighs the decision to either fly to the coast, or travel by van or bus, a little more in favour of the former.
Realty taxes on one’s principal residence are reduced by 50%. The effective saving is actually 35%, since payment of taxes in January of the particular year already results in a 15% discount. One cannot attend at the tax offices in January and receive the 15% early payment discount, plus the 50% discount for being a senior.
At the Cinépolis movie theatre chain seniors receive a considerable discount. However, there are weekday matinee specials which sometimes result in greater savings by not using one’s INAPAM card. The Soriana supermarket chain offers seniors a modest discount on prescription medications.
The municipality of Oaxaca reduces vehicle parking tickets to all by 50% if paid within 15 days of the infraction date. For those with an INAPAM card the fine is reduced by 50% if paid within 30 days rather than only 15, the assumption perhaps being that seniors are a bit slower than the rest of Oaxacan society, or somewhat fogetful from time to time.
There are other discounts, but the foregoing provides a sampling of the savings available to expats 60 years of age or older who hold the INAPAM card. Certainly in terms of realty taxes and transportation costs, INAPAM makes a significant difference for expats retiring in Mexico, whether to Oaxaca or to another Mexican city.
Cautionary Note for Those Seniors Wanting Health in Insurance in Mexico: The Federal Government of Mexico Gives via INAPAM and Takes Away via IMSS
Yet in the face of the foregoing, upon attaining the age of 60 the annual premium actually increases for participation in the Mexican national healthcare plan, known as IMSS. But at under $500 USD a couple, that’s still hard to beat.
Modest health care costs in Mexico, coupled with the benefits for expat seniors holding the INAPAM card, means more disposable income for those 60 years of age or older, to enjoy other activities in retirement; in the case of retiring to Oaxaca, this includes participating in the Oaxaca Lending Library programs, or simply getting on the road and exploring other regions and cities in the state and further abroad throughout Mexico.
Alvin Starkman - Alvin Starkman runs Casa Machaya Oaxaca Bed & Breakfast. He is a paid contributing writer for Mexico Today (http://www.mexicotoday.org).
