Background on Afores and Their Commission Rates
Afores, or Administrators of Retirement Funds in Mexico, manage individual retirement accounts for workers. These organizations charge commissions based on their business strategies and market conditions. In 2016, the average commission charged by Afores was 1.06% of administered balances.
Recent Changes in Commission Rates
According to the National Commission of the Retirement Savings System (Consar), Afores will charge workers a maximum commission of 0.54% in 2026. This represents a significant reduction from the average commission of 1.06% in 2016, effectively halving the rates over the past decade.
In 2025, the maximum commission was set at 0.55%. Nine out of ten Afores opted to charge the maximum, while PensionISSSTE chose a slightly lower rate of 0.52%.
This marks the second consecutive year of commission reductions, following three years (2022-2024) where the commission rate was 0.57%.
The maximum commission determination is based on the arithmetic mean of commissions in defined contribution pension systems in the United States, Colombia, and Chile.
Impact of Reforms on Afore Commissions
The 2020 reforms to the Retirement Savings Systems Law established an annual cap on commissions charged by Afores. Prior to these reforms, each Afore determined its commission based on business strategy and market conditions, with no maximum limit. This sometimes resulted in commissions as high as 2%.
Following the implementation of the annual cap, commissions dropped from an average of 0.90% in 2020 to 0.57% in 2022.
Unaffected Income from Commissions
Despite the decrease in commission rates, Afore income from commissions has increased. From January to September 2025, Afore commission income reached 30,066 million pesos at a 0.55% commission rate, according to Consar data.
In comparison, during the same period in 2020 (with a 0.90% commission), Afore commission income was 28,332 million pesos, representing a 6% decrease from the current year.
Key Questions and Answers
- What are Afores? Afores, or Administrators of Retirement Funds, are organizations in Mexico that manage individual retirement accounts for workers.
- Why are commission rates changing? The Mexican government implemented reforms in 2020 to establish an annual cap on commissions charged by Afores, reducing rates from an average of 1.06% in 2016 to a maximum of 0.54% in 2026.
- How have these changes affected Afore income? Although commission rates have decreased, Afore income from commissions has increased due to higher overall commission amounts.
