The National Commission of the Retirement Savings System (Consar) reported that the 10 retirement fund managers (Afores) had a profit of 3,992 million pesos, at the end of October, which meant an annual drop of 69.9% in actual terms.
Official data revealed that Invercap Afore and Principal Afore have not yet registered profits in the referred period.
Meanwhile, if the profit for October is compared with the profits obtained in September of this year, the 10 administrators had a profit of 1,038 million pesos.
The contraction in the profit of the Retirement Savings System (SAR) is linked to the commission cap –approved in the reform to the SAR Law of 2020– that the Afores charge on the balance of the worker and that forced the historical decrease from 0.80 to 0.57% in the average commission for this year.
It should be noted that commission income is the main source of funds for fund managers, which is why the 23 basis point drop in said item has impacted the entire industry.
There are still 10 Afores, despite the cap on commissions they did not go away. Although there are still some ongoing litigations on the subject. The 10 Afores are betting on an increase in employer contributions and with this they will eventually make up for this bad year,” Carlos Ramírez, former president of Consar, told El Economista.
For his part, Abraham Vela Dib, former head of Consar, explained to this medium that in order for the Afores to be able to offset the impact on their earnings, at least three years must pass once employer contributions increase in 2023, since that the downward revision in commissions was very strong.
When the increase in contributions rises to around 7.5% of the Contribution Base Salary (SBC), this in 2026 and only for those who earn more than four Update Measurement Units (UMA), perhaps that will compensate the ceiling of commissions and will allow the Afores to begin to recover what they are losing, said the former head of the Consar.
Consar itself has indicated that the gradual increase in employer contributions could offset the drop in income of fund managers, given that it projected that the Afores will obtain 500,000 million pesos each year until 2030 due to the gradual increase in contributions. employer contributions as part of the reform to the Social Security Law of 2020.
32% drop in commission income
La Consar, headed by Iván Pliego Moreno, reported that the 10 fund managers accounted for 24.146 million pesos in income from commission charges, which meant a contraction of 32% in real terms at the end of October.
Only in the tenth month of the year, income from the collection of commissions from the Afores was 2,371 million pesos, this represented an annual contraction of 37% in real terms.
In this context, the Consar confirmed a few days ago that the average commission charged by the Afores on the worker’s balance will continue at 0.57% by 2023.
The reduction in the commission will mean a saving of 11,800 million pesos for the more than 70 million workers registered in the SAR.
Withdrawals for 2,016 million pesos in October
The Consar reported that partial unemployment withdrawals made in the Afores reached 2,016 million pesos in October of this year, which meant a drop of 8.4% compared to September, in real terms, according to the Consar.
The amount reported in the tenth month of 2022 revealed that partial withdrawals due to unemployment in fund managers broke a trend of five consecutive months with increases.
However, the amount of the partial withdrawal for unemployment broke the barrier of 2,000 million pesos for the fifth time since the registration began.
In September of this year, the record figure was reached with 2,202 million pesos. In March and August withdrawals of 2,025 and 2,082 million pesos were observed, respectively.
While the first time that unemployment withdrawals exceeded 2,000 million pesos was in October 2020 with 2,094 million pesos.
At the same time, the data from Consar reveal that the amount withdrawn in the tenth month of the year had a contraction of 2.4% in real terms compared to the same month last year.
Thus, Consar reported that more than 1.6 million workers have decided to withdraw money from Afore in the 10 months of the year. Only in October 161,019 people withdrew resources.
Although partial withdrawal is a worker’s right, it is suggested to think twice because withdrawing resources from the administrator reduces weeks of contributions.
santiago.renteria@eleconomista.mx
hartford car insurance shop car insurance best car insurance quotes best online car insurance get auto insurance quotes auto insurance quotes most affordable car insurance car insurance providers car insurance best deals best insurance quotes get car insurance online best comprehensive car insurance best cheap auto insurance auto policy switching car insurance car insurance quotes auto insurance best affordable car insurance online auto insurance quotes az auto insurance commercial auto insurance instant car insurance buy car insurance online best auto insurance companies best car insurance policy best auto insurance vehicle insurance quotes aaa insurance quote auto and home insurance quotes car insurance search best and cheapest car insurance best price car insurance best vehicle insurance aaa car insurance quote find cheap car insurance new car insurance quote auto insurance companies get car insurance quotes best cheap car insurance car insurance policy online new car insurance policy get car insurance car insurance company best cheap insurance car insurance online quote car insurance finder comprehensive insurance quote car insurance quotes near me get insurance
