Background on Afores and Their Unemployment Withdrawal System
Afores, or Mexican Private Pension Fund Administrators, are organizations that manage workers’ retirement savings. These funds allow employees to save for their future while benefiting from tax advantages. The system has gained prominence in Mexico as a crucial component of the country’s social security framework.
Who is Amafore?
The Asociación Mexicana de Afores (Amafore) is an association that brings together nine out of the ten largest Afores in Mexico. It represents these pension fund administrators and plays a significant role in shaping policies related to retirement savings and withdrawals.
Record-High Unemployment Withdrawals in 2025
According to data from the National Commission for the System of Savings for Retirement (Consar), workers made 1.41 million unemployment withdrawals totaling 28,023 million pesos from January to September 2025. This represents the highest number of such withdrawals for a comparable period.
Reasons Behind the Increase
Amafore attributes this rise to two primary factors: the increase in wages and the growth of individual worker savings in Afore accounts.
- Wage Increases: The minimum daily wage rose from 88.36 pesos in 2018 to 248.93 pesos in 2025, directly impacting the amount workers can withdraw.
- Growth in Savings: The average balance per account grew from 76,451 pesos in 2019 to 128,691 pesos in 2025, further contributing to the higher withdrawal amounts.
Stability in Withdrawals Despite Fluctuations
Although there may appear to be significant month-to-month variations in the number of unemployment withdrawals, Amafore clarifies that the trend has remained relatively stable over broader periods.
Following a surge in withdrawals due to the COVID-19 pandemic, Amafore notes that the monthly number of withdrawals has since remained stable. However, the total amount withdrawn continues to grow due to rising wages and savings.
Understanding Unemployment Withdrawals
Unemployment withdrawals from Afores are a right for individuals with an Afore account who lack formal employment and haven’t made such withdrawals in the past five years.
Amafore emphasizes that this mechanism serves as a safety net for workers facing immediate needs, allowing them to access a portion of their retirement savings in the present while ensuring their future retirement benefits remain intact if they return the withdrawn amount responsibly.
Key Questions and Answers
- What are Afores? Afores are private pension fund administrators in Mexico that manage workers’ retirement savings.
- Why are unemployment withdrawals at a record high? The increase is due to rising wages and growing individual savings in Afore accounts.
- Is the trend in withdrawals stable? Despite month-to-month fluctuations, the trend has remained relatively stable over broader periods.
- Who is eligible for unemployment withdrawals? Individuals with an Afore account, lacking formal employment, and who haven’t made such withdrawals in the past five years are eligible.
- What happens if workers return the withdrawn amount? If returned responsibly, workers can maintain their future retirement benefits while addressing immediate needs.
