Afore: how much would a person who decides not to make a voluntary saving receive a pension

Saving is one of the most important habits that some people carry out from a very young age, whether it is to fulfill a dream in the short, long term or to live a better future life, for example to achieve a better pension with the voluntary savings, that is, by making a financial contribution to the Retirement Fund Manager (Afore).

However, there are those who decide not to pay an “extra” to their Afore, so the resources will be less. In that regard, we will give an example of how much a person who did not contribute more to his account could receive as a pension.

And it must be remembered that the Afores are responsible for safeguarding the resources of workers throughout their working lives, until the moment of their retirement, when they will hand over the accumulated.

Even, the Mexican Association of Administrators of Retirement Funds (Afore) reiterated that achieving a good pension upon reaching adulthood is the responsibility of each person. In addition, you can choose the Afore you want or the one that generates the most returns.

How much will a person who decides not to make voluntary savings receive a pension?

The National Commission on Savings for Retirement (Consar) has given some panoramas of the outcome that a worker could yield.

In this case, he is a 25-year-old man with an alleged salary of 21 thousand 538 pesos, and he plans to retire at the age of 65.

However, according to the calculation made by Consar, the citizen who did not save will get a pension of at least 11 thousand 415 pesos.

Although if you decide to pay an extra amount of money to your Retirement Fund Manager, then it could reach the same amount as your current salary, that is, 21,538 pesos.

According to Consar, the worker began to pay contributions at the age of 25 for the Mexican Social Security Institute (IMSS) and will retire at age 65. Assuming a real annual net income of 4%, a contribution density of 80%, the approximate income will be five minimum wages throughout your working career, pension calculated with life annuity (without beneficiaries) and a discount rate of 3%.

For this reason, the Commission calls for voluntary savings, that is, to contribute a percentage of your salary, which can range from 1 to 13%. The key to achieving what you want is to be consistent.

In this regard, a couple of days ago we gave the example of a woman who made voluntary savings and achieved a pension of more than 20,000 pesos. Compared to a man, they have lower wages and life expectancy is lower.

Consar has repeatedly reiterated that making voluntary savings can generate important benefits, such as:

*High performances.- Superior to any other long-term savings alternative.

*Tax Benefits.- Voluntary contributions can be deducted when making the annual tax return.

*Flexibility.- Anyone can pay the amount they want, according to their possibilities.

*Facility.- It can be done from home or in one of the establishments closest to your home.

*Security.- The investment is safe because the Afores are supervised by Consar.

*Availability of resources.- If necessary, you can dispose of your resources at any time.

* Best pension.- It will increase the balance of the pension when it comes time to receive it.

In Mexico there are 10 Afores. Of which, eight are private companies, one public and one more is a partnership between government and an individual.

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