Losses in the Afores totaled 422,268 million pesos at the end of October: Consar

The handicaps presented in the Retirement Savings System (SAR) have totaled 422.268 million pesos between January and October 2022, reported the National Commission of the Retirement Savings System (consar).

In the ten months to 2022, capital losses have been reported in six months (January, February, April, June, August and September) and capital gains have been recorded in the remaining four months, according to data from the consar.

In this sense, the capital gain registered in the tenth month of the year was 83,042 million pesos; meanwhile from October 2021 to October 2022, the consar recorded capital losses of 326,745 million pesos.

It should be noted that in September of this year, the capital losses of the Retirement Savings System they exceeded 366,030 million pesos of capital gains generated in all of 2021.

The National Commission of the Retirement Savings Systemheaded by Iván Pliego Moreno, has reported that it is not unreasonable to think that the Retirement Fund Administrators (Afores) end 2022 with disabilities.

The president of the consar He explained that the nature of the investments is variable, which is why during this year there have been losses due to the economic context of the post-pandemic, added to the war in Europe.

The loss is not a loss, it is the reduction in the value of the investment portfolio. The loss materializes when the afore is changed or resources are withdrawn from the fund manager, therefore it is suggested not to carry out any of these procedures in periods of volatility.

The consar reported that when a worker changes from Afore for retirement in periods of disability, the amount of his balance can contract 32 percent.

While in the period of surplus value, the saver who makes a negative transfer, -that is to say, who moves to a fund manager with a lower yield than he previously had-, can reduce his balance up to 12.5 percent.

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