While the present pension system represents a significant improvement over the previous model, the narrow range of coverage and the low level of expected pension income will leave most Mexicans with insufficient resources for retirement. Most importantly, INFONAVIT has an established relationship with formal-sector workers through the mandatory 5% employer contribution that is held in individual accounts that currently can be used to finance the purchase of a home and to supplement pension income. The proposed changes include: i) the introduction of both a universal pension for those who fail to qualify for a recognised pension and unemployment insurance (Mexico is the only country in the OECD that currently has no national system of unemployment insurance), ii) measures to increase competition among suppliers of pension sendees, and iii) additional provisions that will significantly affect the role of INFONAVIT in providing pensions and give the institute new functions in the country’s unemployment insurance regime.