Afores Will Lower Their Fees in 2025
The fees charged by retirement fund administrators (Afores) will be lower in 2025 compared to this year. The average fee will be set at 0.547% in 2025, while this year it reached 0.566%.
Which Afore will have the lowest fee in 2025?The Board of Directors of the National Retirement Savings Commission (Consar) has approved the fees that Afores will charge next year on the managed balances, with 9 out of the 10 administrators operating in the country set at 0.55%. Only Pensionissste will have a lower fee of 0.52%, according to the statement issued by Consar. The reduction in fees next year will mean savings of approximately 9 billion Mexican pesos. Lower fees are advantageous for workers, as it translates into extra savings and a higher pension balance, highlighted Consar in its announcement.
It’s interesting to see how fee reductions can have a positive impact on workers' savings. Lower management costs allow a larger portion of income to be allocated to actual savings, which can ultimately lead to more robust pensions. It’s essential for workers to stay attentive to their Afores and consider options that provide better conditions to maximize their savings. It's also advisable to diversify savings and not rely solely on what is obtained through Afores.
