Introduction to Afores and Their Historic Performance
In 2025, the savings for retirement of workers in Mexico have achieved historic returns, with Afores (Administrators of Funds for Retirement) reporting profits of 1.12 billion pesos from January to November, a figure never before seen for a similar period, according to the National Commission of the System of Savings for Retirement (Consar).
Moderation in Growth
However, the figures released on Monday show that the growth of Afores’ profits slowed down in the eleventh month compared to previous months.
In November, Afores’ profits amounted to 32.608 million pesos, a 77% decrease from October, as reported by Consar.
November marked six consecutive months with profits for the Afores administrators, except for April when there were losses.
“The expectation for December is that it will be very similar to November’s results, making 2025 a highly positive year for the Retirement Savings System (SAR) and the savings of Mexican workers,” highlighted the Mexican Afores Association (Amafore).
Understanding Afores and Their Investments
What are Profits?
Afores are tasked with investing workers’ retirement savings to generate the highest possible returns, thereby improving their pensions. They invest in various financial instruments such as debt (both public and private), stocks in stock exchanges, Fibras, currencies, among others.
How are Workers’ Savings Invested?
The performance of each instrument in the market reflects as profits or losses on workers’ retirement savings.
By the end of November 2025, Afores had invested 52% of workers’ savings in Mexican government debt; 13% in international variable income (foreign stock exchanges); and 12% in private national instruments.
Additionally, they had 8% in structured instruments, 7% in national variable income (Mexican stock exchanges), 3% in Fibras, 1% in international debt, and 3% in other assets.
During November, mixed results from U.S. stock markets affected Afores’ investment portfolios.
While the S&P 500, a composite index of the 500 most actively traded stocks on Wall Street, increased by 0.13%, the technology-focused Nasdaq Composite index dropped by 1.51%.
Historic Year of Returns
Experts have explained that throughout 2025, Afores have benefited from the strong performance of stock markets in Mexico and worldwide, along with interest rate cuts.
Amafore affirmed that the results from January to November 2025 confirm that Afores are an investment instrument accessible to everyone, regardless of savings amount, and generate a return superior to other market alternatives.
“Beyond the excellent financial markets and Afores performance in 2025, the system’s historical average nominal return is over 10% and real return of 5%. This perspective allows Afores to fully capitalize on market performance and optimize portfolios to generate this annual real return, which surpasses other investment alternatives available in the market,” Amafore added.
As of November, the 10 Afores in the country administered 69.38 million retirement savings accounts for workers, totaling 8.29 billion pesos.
Consar has emphasized that more than half of Afores savings originate from the returns accumulated throughout the history of the SAR, established in 1997.
Experts and Amafore have warned that in 2026, workers’ Afores savings returns will moderate compared to the current year due to factors like fewer interest rate cuts and less positive returns in Mexican and global stock markets.
Key Questions and Answers
- What are Afores? Afores are administrators of funds for retirement savings in Mexico, tasked with investing workers’ savings to generate the highest possible returns.
- What instruments do Afores invest in? Afores invest workers’ savings in various financial instruments, including debt (public and private), stocks in stock exchanges, Fibras, currencies, and others.
- What were the November 2025 investment allocations for Afores? At the end of November 2025, Afores had invested 52% in Mexican government debt, 13% in international variable income, and 12% in private national instruments.
- Why did Afores’ profits decrease in November 2025? The decrease was due to mixed results from U.S. stock markets, with the S&P 500 increasing by 0.13% and the Nasdaq Composite index dropping by 1.51%.
- What are the expected returns for Afores in 2025? Experts predict that the historical average nominal return will be over 10%, and the real return will be around 5% for all of 2025.
- What factors will influence Afores returns in 2026? Fewer interest rate cuts and less positive returns in Mexican and global stock markets are expected to moderate Afores’ returns in 2026.
