Caution favors Afore investment

How much will you pay your Afore in 2023 for managing your savings?

If you have a retirement savings account this 2023 you will pay five pesos and 70 cents for every thousand pesos of balance that you have in it, that is, 0.57%, which is the commission that eight of the 10 operating Afores will charge next year in Mexico, the other two, Coppel and PENSIONISSSTE will retain 0.56% and 0.53%, respectively.

The commissions that the Afores will charge this 2023, for the first time in the history of the pension administrators, will not decrease. Workers will continue to pay an average of 0.57% to these companies for the operation of their retirement savings.

Despite the fact that the quota they pay will not be reduced, the National Commission of the Retirement Savings System (Consar) estimates that workers will obtain benefits from this decision, since they will maintain savings in their individual account for more than 12,600 million pesos. , which will allow you to increase the balance for your withdrawal.

In other words, on average each of the 72.1 million retirement savings accounts would be saving about 174 pesos in 2023.

The Consar estimates that since the historical decrease in commissions to 0.56% was reported in 2022 and this 2023, savings of 24.400 million pesos will be accumulated.

Of the 10 Afores that operate in Mexico, eight will continue to charge 0.57% on the balance of the accounts, while Afore Coppel and PENSIONISSSTE will continue to be the cheapest, retaining 0.56 and 0.53% respectively, according to data from Consar.

Moisés Pérez Peñaloza, director of retirement and financial well-being at AON, stressed that the decision to keep the commissions unchanged is due to commercial issues of the companies and that will help them not face more financial pressures.

On the part of the worker, although this represents less savings in the payments they will make, it does not have a significant impact either.

“With all this, the economic viability of the Afores business is even beginning to complicate, that is, they already had a very strong blow in the drop in commissions in 2022 and on the other, now the balances are lower due to the effects of the markets that caused losses in workers’ savings”.

On the part of the workers, although the same savings may not be presented as in other periods, the impact will not be so great because the most important thing with the Afores has to do with the performance they provide, said the specialist.

For example, someone can say: charge expensive, but pay me well. “We have cases in the system where there is a particular Afore that has consistently always been the cheapest but has not been the best performer,” he explained.

According to Consar, before choosing an Afore to manage your money, it is important that you consider three elements: services, commission and performance. All this information is available within the Commission’s platform.

Voluntary savings in Afores will be cheaper

Although the commissions that the Afores will charge for managing your money accumulated in a retirement savings account will not decrease, the charges made by the pension operators for the voluntary contributions that you make will decrease.

The Consar managed to get the Afores that have investment companies, siefores, additional for the administration of voluntary savings, to reduce the commission they charge for voluntary savings from an average of 0.97% to 0.57%, which indicates that the people who do this type of contributions will pay less.

If you do not know how much you pay to the Afore because it manages the money accumulated in your retirement savings account, for example, in what they invest that money so that you obtain returns for it, and you want to know this information, in the account statement that they must send you once every four months the commission collection section is broken down.

For example, from the period September 2021-August 2022, a person with a balance of almost 150,000 pesos paid the Afore 933 pesos.

How much do the Afores earn?

From January to November of this year, the Afores have earned 26,531 million pesos by way of commission. The Afores that receive the most money for the fees they charge are: XXI Banorte, Sura, Profuturo and Citibanamex, according to data from Consar.

Of this money that enters as payment of workers for the operation of retirement savings, just over 6,270 million pesos are used for affiliation costs and transfers.

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