Retirement Savings Account: Who Qualifies and What You Get
Learn how the Retirement Savings Account works for workers in Mexico and how to manage your AFORE for your future.
A Retirement Savings Account is an investment account designed to help you build a fund for your future after you stop working. This account, often referred to as an AFORE, serves as a dedicated space to grow your money over time through various investment options.
Who it's for
This scheme is available to every worker in Mexico who holds a valid RFC. Having this identification number is the primary requirement to ensure your earnings are correctly directed into your personal retirement account.
What you get
When you participate, you get an investment account specifically structured for your retirement. This account is meant to hold your savings and allow them to grow through investments, providing a financial foundation for your life once you are no longer part of the workforce.
What it costs you
While you do not pay a separate upfront fee to join, there are management fees involved. These fees are used to cover the costs of overseeing your investments and maintaining the account, and they are deducted directly from your total balance.
The catch to know
One important thing to understand is that you are not automatically assigned to a single provider for life. You have the right to choose your AFORE, and it is important not to simply stick with a default provider. Making an active decision about who manages your money can impact your long-term savings.
How to apply
- Confirm that you have your RFC ready for registration or management.
- Look into the different AFORE providers available to you.
- Decide which provider you want to manage your retirement funds.
- Use the official portal to manage your account or find more information: https://www.gob.mx/consar