Understanding Your Right to Switch Afores
Having a retirement savings account (Afore) is a right for all working individuals, and maximizing its potential is crucial to securing a dignified pension upon retirement. With ten Afore options available in Mexico, workers have the freedom to choose their administrator or switch to another for better returns, lower fees, and improved customer service.
Reasons for Changing Afores
- Seeking higher returns on your savings
- Looking for lower administrative fees
- Desiring better customer service
- Preferring closer Afore branches to your residence
According to the National Commission for the System of Retirement Savings (Consar), there were 813,955 Afore transfer processes between January and May of this year. If you’re contemplating a switch, familiarize yourself with the procedures and conditions involved.
Pre-Transfer Considerations
Vanessa Prieto, Coordinator of Information and Linkage at Consar, emphasizes the importance of comparing returns, fees, and considering your age when choosing a new Afore.
Vanessa Prieto: “It’s crucial to consider your age because your funds are invested in a fund with lower risk as you get older and higher risk at younger ages.”
Before initiating the transfer process, ensure you have an updated identity file, a valid official ID, and a current proof of residence. Additionally, you must have at least one year of stay with the Afore, except in specific cases.
- If you’re choosing an Afore with better returns or your current Afore modified its commission scheme, or is undergoing a merger or dissolution process, you don’t need to wait for the one-year tenure.
The Transfer Process
To change administrators, follow these steps:
- Visit the desired Afore branch and complete the transfer request form with your personal details.
- Record a video consenting to the transfer, provide biometric data if not previously submitted, and receive a tracking folio.
- You will receive an email or text message with a link to confirm the transfer via Afore Web.
- The Afore will send a transfer confirmation to your address or email, detailing success or rejection reasons.
- Your previous Afore must issue a liquidation certificate within five business days of the resource transfer.
The entire process, from request confirmation to the Afore change, takes 20 business days. You can transfer once per year; however, if another Afore consistently offers better returns, Consar allows a second transfer before the year mark.
No Need to Meet Face-to-Face
All Afore-related procedures, including transfers, are free of charge. Any Afore must provide complimentary guidance regardless of client status.
Vanessa Prieto: “Don’t be misled by third-party offices or individuals offering false promises for financial gain, or those conditioning additional services.”
