The Retirement Fund Administrators (AFORES) They opened 2025 with surplus value, after the Bank of Mexico (Banxico) continued cutting the interest rates at the start of the year.
During January 2025, the surplus value of the Afores amounted to 171,919 million pesos, the largest figure for a single month since last September, according to data released by the National Commission of the Retirement Savings System (Consar).
January surplus value occur after the Governing Board of the Bank of Mexico cut in 50 base points The reference rate, to leave it at a level of 9.5%, at its January meeting.
The cuts to the interest rates on the part of Banxico benefit the Mexican debt market, in which the AFORES They have most of their investments.
A cut at interest rates revalue the price of debt bonds, hence the lowest rates are translated into surplus value for agores.
The administrators have the mandate to invest the savings for the withdrawal of the workers in order to generate the greatest possible yields and thus maximize the savings.
Thus, Afores invest the savings in different financial instruments such as actions in the stock exchanges, debt bonds, currencies, raw materials, fibers, etc.
Depending on the performance that these instruments have, the Afores are presenting capital gains or disabilities.
It should be noted that the investments of the Afores are long -term, hence the performance of a month or even one year does not determine its final performance.
January surplus value occur after 2024 Afores achieved records for a single year of 556,758 million pesos.
At the end of January 2025, Afores administered a total of 68.7 million accounts for retirement savings with 7.01 billion pesos, a figure that represents about 20% of the Mexican gross domestic product (GDP).
Since they were created in 1997 and until the closing of 2024, the Afores accumulated historical surpluses by 3.62 billion pesos, that is, more than half of the resources they administer are the product of the surplus value.
The historical performance in real terms that the Afores have given to the workers is 4.84% in real terms until the closing of 2024.
