Retirement fund manager (afore) Pensionissste revealed that the decision to maintain the commission at 0.53% in 2022 is to generate a greater positive impact on the replacement rate of account holders.
“Afore Pensionissste has been characterized by having workers at the center of its strategies, always in favor of improving their retirement conditions,” commented its executive member, Edgar Díaz Garcilazo.
The replacement rate is the percentage of the salary that a person will receive after retirement; With the reform of the Retirement Savings System Law (SAR), the percentage of contributions will gradually increase from 6.5 to 15% as of 2023 and with this there will be better pensions in the future.
The average replacement rate in Mexico is around 25%, however with the SAR reform it would rise to 62%, according to the Bank of Mexico.
“Hence the importance of continuing to join efforts to have a lower commission charge for the administration of resources and promote actions to increase the savings of the Individual Account, through Voluntary Savings”, emphasized the executive member.
The Organization for Economic Cooperation and Development (OECD) recommends replacement rates equal to or greater than 70 percent.
On Monday, the National Commission of the Retirement Savings System (Consar) revealed the percentage of commission collection that the Afores will impose for 2022. Thus, eight Afores will charge 0.57% and 0.53% Afore Pensionissste; In other words, it will continue with the lowest commission in the market.
It should be remembered that Afore Coppel is in the process of having Consar authorize its proposed commission for the following year.
According to data from the regulator, afore Pensionissste registered 1.8 billion pesos in commission income at the end of the tenth month. Likewise, it obtained a net profit of 890 million pesos only in October.
The official also said that afore Pensionissste is an efficient public body, which provides good returns and strengthens its portfolio of benefits for workers, through the Distribution of Operating Remainder (ROP), the Performance Compensation Scheme and the “Saves , Update and Win ”.
Reference-www.eleconomista.com.mx