During the first quarter of the year, Mexican Afores surpassed $350 billion in assets under management for the first time in history, according to final figures from the regulatory agency.
The Afores ended the first three months of the year with a total balance of MXN 7.194 trillion, equivalent to $359.7 billion, based on an average exchange rate of 20 pesos per dollar—the rate at which the Mexican currency was traded during the first quarter.
The accumulation phase for Mexican Afores is nearing its end, and according to industry representative Guillermo Zamarripa, it may have already concluded. Other analysts also point out that the era in which Afores received significantly more contributions than pension payments is drawing to a close.
However, the gradual increase in worker contributions—outlined in the major 2020 pension reform—has been a key factor in allowing Afores to continue capturing inflows and, to some extent, slow or delay the deaccumulation phase, which is nonetheless expected to arrive by the end of this decade.
In the meantime, Afores continue to attract growing assets, having increased by over MXN 1 trillion in the past year, driven primarily by capital gains.
According to Consar, by the end of March, Afores managed 68.682 million retirement savings accounts, with total assets of MXN 7.194 trillion, representing 17% annual growth—an increase of MXN 1.05 trillion (or $52.5 billion) over the previous year.
Experts clearly identify two key drivers behind the increase in Afore assets:
Capital gains, reflecting the growing pool of assets under management and resulting in higher benefits paid to workers.
The mandatory contribution increases introduced by the 2020 reform, which will remain in effect until 2030, when the total contribution rate is expected to reach 15% of workers’ income.
Thanks to the 2020 Retirement Savings System (SAR) reform, employer contributions to workers’ Afores are gradually increasing through 2030. Before the reform, employer contributions stood at 5.15% of the worker’s salary. Starting in 2022, they began to rise, reaching 8.42%, and for 2025, they have increased to 9.51%.
The reform’s goal is for employer contributions to reach 13.88% of the worker’s salary by 2030, raising total contributions to 15%, up from 6.5% prior to the reform.
Record Capital Gains
Capital gains have also reached unprecedented levels. In just the past 12 months, Afores posted a record MXN 770.631 billion in gains, equivalent to $38.531 billion.
During the January–March 2024 period, despite the risks posed by the arrival of President Trump in the U.S. and his aggressive tariff policy, Afores recorded gains of MXN 307.838 billion ($15.391 billion), marking a record for a first quarter.
In this context, Mexico’s pension system—with Afores as one of its core pillars—continues to deliver positive results for workers and is consolidating its role as the most important driver of national savings, alongside the banking system.
For Funds Society