21 years of the savings system

This month, the Savings System for Retirement has completed its first 21 years of existence. As in any set of rules, principles or measures, significant progress is being made, but challenges remain. For example, it is essential to continue to promote actions that encourage formalization in the economy in order to increase the density of contribution

. In addition, another element that requires greater penetration is D & D. Encourage the self-employed to join the SAR. pension coverage in the country remains low. Promote voluntary savings of self-employed since it is believed that saving in the Afore already represents the second pillar of Mexican heritage, just behind the house.

Well, but there is also progress. At the end of May 2018, the retirement savings system accumulated 3.28 trillion pesos of retirement savings, or 14.84 percent of the country's gross domestic product. Its collection accumulates about 2.2 billion pesos for pension costs, old-age unemployment and old age (tripartite contributions by the worker-employer-government).

It should be noted that out of the total accumulated resources In the pension system, 45% (1.48 trillion) represents the net return of commissions generated over time. The rest consists of tripartite contributions

Over these two decades, more than 60,962,021 accounts were opened, which for many Mexicans represents their first and perhaps the only contact with the formal financial system

. in 21 years of the history of the pension system, they stand at 11.31% in nominal terms and 5.40% in real terms, that is to say once inflation discounted, which places them as an excellent alternative for saving in the country. All savers in the system, both those of miners and those with higher incomes, benefited.

1,153.336 million pesos were allocated from the retirement savings of Mexicans to the development of Mexican businesses of different sizes belonging to different sectors. of economic activity. In this amount is the financing of infrastructure and housing for 408 286 million pesos. This saving has fostered a virtuous circle for development.

The pension system has contributed significantly to the deepening of the national financial system. At present, SIEFORE's net assets represent 25.3% of the country's domestic savings. In addition, 21 years ago, the duration of federal and corporate debt investments did not exceed 365 days. Today, thanks to the country's economic stability and the fact that the country has a long-term institutional investor such as AFORE, there are investments that exceed 20 and up to 20%. at 30 years old. It was possible to maintain a downward trend in commissions that brought the system average from 1.9% in 2008 to 1.01% in 2008.

Despite the progress and challenges, it is necessary to 39, deepen financial education and social security culture. The Mexicans, where the Consar and the Condusef, perform tasks and strategies to promote greater knowledge of the subject, since data and information on this system make it possible to make better decisions.