An AFORE (Retirement Fund Administrator) is a private institution that controls the administration of the individual retirement savings accounts of those workers affiliated with the Mexican Social Security Institute (IMSS) and the ISSSTE. Each of the people who are registered in the IMSS are assigned to an AFORE.

The AFORES have legal personality and their own assets, are authorized by the Ministry of Finance and Public Credit and are regulated by the National Commission of the Savings System for Retirement (CONSAR).

When a worker is assigned to an AFORE, a unique, non-transferable and personal account is opened. The contributions periodically made by the company, the government, and the worker are deposited in this account during the time they contribute in Mexico. The contribution must represent 6.5% of the salary.

In this way, a savings fund is created during the years that the person works in Mexico for their future pension. The contribution will be calculated according to the base contribution salary. The balance of the AFORE is made up of social security contributions (IMSS) and contributions to the housing subaccount (INFONAVIT).

The AFORES invest the balance of each worker’s individual retirement account in financial markets through Investment Companies Specialized in Retirement Funds, SIEFORES. AFORES are subject to a low-risk investment regime designed by CONSAR.

The returns generated by the investments made by AFORE are capitalized and form part of your account balance.