Introduction and Background
As Mexico’s Sistema de Ahorro para el Retiro (SAR) marks its 28th anniversary, Afore XXI Banorte celebrates its role as a strategic ally in shaping a modern, efficient, and future-focused retirement scheme for Mexicans.
Afore XXI Banorte’s Growth and Impact
Since its establishment in 1997, Afore XXI Banorte has consistently adapted to social, economic, and demographic changes in Mexico. This adaptability has led to its growth into the largest retirement fund administrator in Latin America, serving over 7 million clients and managing more than 1.4 trillion pesos in assets.
Transformations in the SAR
The SAR has undergone significant transformations, including the 2020 structural reform that increased mandatory contributions and improved retirement coverage for millions of working individuals. Additionally, the creation of the Fondo de Pensiones para el Bienestar in 2024 aims to ensure better pension conditions for those with low retirement savings.
“The current SAR structure aligns with the population’s needs and national priorities,” stated David Razú Aznar, General Director of Afore XXI Banorte. “Currently, the Afores account for 21% of Mexico’s GDP, making them a crucial pillar for the country’s infrastructure development and strategic projects, which in turn boosts each Mexican’s retirement savings.”
International Recognition of Mexico’s Pension System
Mexico’s pension system has garnered international acclaim. In its 2024 edition, Mercer’s Global Pension Index ranked Mexico as the third-best pension system in Latin America, scoring 68.5 points and highlighting its improvements in sustainability and alignment with the population’s financial needs.
SAR’s Contribution to Financial Inclusion and Economic Development
The SAR has promoted financial inclusion by integrating millions into the formal retirement savings system. It has also bolstered the capital market’s development and channeled resources towards strategic, sustainable, and innovative projects. Afore XXI Banorte’s investment portfolio aligns with key sectors such as energy, housing, infrastructure, and green bonds, fostering economic growth with social impact.
Afore XXI Banorte’s Commitment to the Future
Almost three decades after the SAR’s inception, Afore XXI Banorte reaffirms its dedication to transforming the pension system, maintaining a long-term perspective that prioritizes Mexican workers and aims to ensure dignified pensions, financial well-being for the population, and economic development for the country.
Key Questions and Answers
- What is the Sistema de Ahorro para el Retiro (SAR)? The SAR is Mexico’s retirement savings system, established 28 years ago to provide a modern and efficient framework for workers’ retirement planning.
- Who is Afore XXI Banorte? Afore XXI Banorte is a prominent retirement fund administrator in Mexico, managing assets for over 7 million clients and playing a crucial role in shaping the country’s pension system.
- What transformations has the SAR undergone? The SAR has experienced significant changes, including increased mandatory contributions and the creation of the Fondo de Pensiones para el Bienestar to improve retirement conditions for low-savings individuals.
- How has Mexico’s pension system been recognized internationally? Mexico’s pension system has received international acclaim, ranking third in Latin America according to Mercer’s Global Pension Index in 2024.
- What impact has the SAR had on financial inclusion and economic development? The SAR has promoted financial inclusion, bolstered the capital market, and channeled resources towards strategic projects, contributing to economic growth with social impact.
