Background on AFORES and Their Recent Success
Administradoras de Fondos para el Retiro (AFORES) are Mexican pension funds that manage workers’ retirement savings. Recently, AFORES have experienced significant growth in profits due to increased mandatory contributions and historical gains. This surge has resulted in a 35% rise in tax payments on their earnings, reaching levels not seen since 2021.
Tax Payments and AFORES Earnings
According to data from the National Commission of the Retirement Savings System (CONSAR), AFORES paid 2,550 million pesos in taxes on their earnings by the end of June 2025. This is an increase from 1,891 million pesos paid during the first half of 2024.
Experts attribute this growth to the rise in mandatory contributions and historical gains made by AFORES in 2025. The gross profits of AFORES reached 6,961 million pesos by June, a 16% increase compared to the same period in 2024. Net profits for AFORES during the first half of 2025 were 7,598 million pesos, a 40% increase from the same period in 2024.
Increased Mandatory Contributions
Moisés Pérez Peñaloza, founder of the consultancy Yo Jubilado, explains that the record-breaking profits of AFORES are due to the growth in mandatory contributions. Following the 2020 pension system reform, there has been a progressive increase in employer contributions to workers’ retirement accounts.
Before the reform, employer contributions were 5.15% of an employee’s salary. Since 2022, they have been gradually increasing to reach 9.51% of the worker’s salary by 2025. This rise in contributions means more resources entering AFORES, leading to greater management and potential returns.
The goal is for contributions to retirement savings accounts to reach 15% of an employee’s salary by 2030.
Historical Gains and Commissions
In addition to increased contributions, AFORES have also benefited from historical gains. In the first half of 2025, AFORES achieved plusvalías (gains) of 534,180 million pesos. Due to the rise in contributions and returns over recent years, AFORES have managed more than 7 trillion pesos for the first time in history.
The primary source of income for AFORES is the commissions they charge workers for managing their savings. When balances under management are larger, so too are the commission-based incomes.
Statistical Distortion in Net Profit Increase
Mari Nieves Lanzagorta, vice president of the Mexican AFORES Association (AMAFORE), explains that the net profit increase for AFORES is due to a statistical distortion caused by the high plusvalías (gains) registered by AFORES in 2025.
Lanzagorta clarifies that, by law, AFORES must maintain a financial reserve to protect workers’ savings in case of investment rule violations leading to minusvalías (losses). This reserve is invested similarly to the rest of AFORES’ managed resources and fluctuates with plusvalías or minusvalías.
“Since the reserve is invested similarly to AFORES’ managed resources and experienced significant plusvalías in May, this is considered ‘pure profit.’ However, it’s merely a repositioning of the reserve held by AFORES,” Lanzagorta explained.
Key Questions and Answers
- What is the Impuesto Sobre la Renta (ISR)? The ISR, or Impuesto Sobre la Renta, is calculated by applying a 30% corporate tax rate to the accumulated income after deducting authorized deductions, employee participation in profits, and any prior-year fiscal losses.
- The ISR is the primary source of federal tax revenue, generating 1.37 trillion pesos between January and May 2025—an 8% increase from 2024. Currently, the ISR accounts for 57% of all federal tax revenues and 39% of the government’s total income.
