Introduction and Background
Managed savings by AFORES (Mexican Occupational Pension Funds) have witnessed a remarkable 75% growth since 2020, largely attributed to the reforms implemented that year. These reforms aimed to incrementally increase mandatory contributions to retirement savings accounts for workers.
Reform Details and Impact
In 2020, significant pension system reforms were approved for AFORES. The central points of these reforms included gradually raising mandatory contributions to retirement savings accounts. Prior to the reform, mandatory contributions stood at 6.5% of a worker’s salary; by 2030, they are set to reach 15%.
Moisés Pérez Peñaloza, founder of the consultancy Yo Jubilado, explains that these reforms have resulted in AFORES managing more funds. This increased capital has not only led to higher balances in individual retirement savings accounts but also generated greater income and profits for AFORES, despite lower commission rates.
Growth in Managed Savings
- Before Reform: In July 2020, AFORES managed 4.31 billion pesos, representing 19.3% of Mexico’s Gross Domestic Product (GDP).
- After Reform: By July 2025, AFORES manage 7.65 billion pesos, now accounting for over 21% of the current GDP, according to data from the National Commission of the Retirement Savings System (CONSAR).
This growth has resulted in higher returns during periods of appreciation and larger individual retirement savings account balances for workers.
Housing Savings
In contrast, savings for workers’ housing funds, managed by the National Institute of Housing Funds for Workers (INFONAVIT), have grown at a slower pace over the past five years.
- July 2025 saw the housing fund with savings amounting to 2.43 billion pesos, marking a 65% increase from July 2020, as per CONSAR data.
Combined, AFORES and INFONAVIT resources totaled 10.08 billion pesos in the SAR (System of Retirement Savings) by July 2025, reflecting a 67% increase since 2020.
Increase in Workforce
Besides the reform-driven increase in resources, AFORES’ managed savings have also grown due to the rising number of workers with individual retirement accounts.
- July 2020 saw 67.15 million accounts in AFORES; by July 2025, this number rose to 68.82 million accounts, an increase of 1.67 million.
Key Questions and Answers
- What were the main points of the 2020 AFORES reforms?
The key aspects included incrementally raising mandatory contributions to retirement savings accounts from 6.5% of a worker’s salary to 15% by 2030. - How have AFORES’ managed savings grown since 2020?
Managed savings have increased by 75%, from 4.31 billion pesos in July 2020 to 7.65 billion pesos in July 2025, now representing over 21% of the current GDP. - What is the growth rate of housing savings managed by INFONAVIT?
Housing savings have grown by 65% since July 2020, reaching 2.43 billion pesos in July 2025. - How many more individual retirement accounts are there in AFORES now compared to 2020?
The number of individual retirement accounts in AFORES increased from 67.15 million in July 2020 to 68.82 million in July 2025, a growth of 1.67 million accounts.