He Retirement Savings System (SAR) in Mexico is in the process of recovering the losses registered in 2022, as explained by the president of Consar, Iván Pliego Moreno.
Due to this situation, changes in withdrawal funds from a Retirement Fund Administrator (Afore) to another they cannot be carried out at the moment. The Afores are entities in charge of managing the resources of workers who are listed in the SAR.
In other words, if a worker in Mexico has a formal job, a part of his salary goes to his individual Afore account to save for retirement. Afore changes are not possible because, upon changing administrator, capital losses would become consolidated losseswhich would affect savers.
According to Consar, the SAR registered a historical figure in losses, with 215 thousand 477 million pesos in capital losses in 2022.
This phenomenon was due to the financial market volatilitywhich negatively affected the investments of the Afores.
Besides, in 2022 there was a withdrawal of 23 thousand 169 million pesoswhich made the situation worse.
It is important to note that these losses do not imply definitive losses, as the financial market can recover over time.
However, before Afore changes can be madeit is necessary to move forward in the recovery process.
As for savers, an account holder can access the resources of their Afore only after demonstrating that they have been unemployed for 46 days.
This means that if a worker loses their job and cannot find a new one within 46 days, they can request to withdraw their savings.
However, if this withdrawal is made while there are losses in the Afores, the saver could receive less money than expected.
In January 2023, the SAR began with a positive streak, according to Consar. 51 thousand 318 million pesos were added in capital gains from the Afores, which is good news for savers.
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It is important to closely monitor the evolution of the SAR so that savers can make informed decisions regarding their retirement.
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