La Jornada: Expert proposes that Afore charge commission for flow and not for the balance

Gustavo Leal Fernández, a social security specialist at the Metropolitan Autonomous University, proposed that retirement fund administrators (Afore) collect their commission on the flow of contributions instead of on the accumulated balance in individual accounts, an amount that continues to constantly expand and makes the profits of these companies increasingly solid.

Data from the National Commission of the Retirement Savings System (Consar) show that the net profit of the country’s 10 Afore reached 7,753 million pesos between January and May, a figure that represents an increase of 21.4 percent in nominal terms and 16.6 percent in real terms compared to the same period in 2025.

These profits are supported by commission income of 19 billion pesos in the same period, 18 percent more in nominal terms and 13.3 in real terms than a year before, the highest level for a similar period since 2021.

Leal Fernández explained that the Afore generate profits without a direct link to the performance of the pensions they administer, because their commission is calculated on the total volume of 8 trillion 900 billion pesos of 70 million 300 thousand workers, instead of being calculated on the flow of new contributions.

Although commissions have decreased gradually, from 0.9 to 0.53 percent on average since the 2022 reform, he pointed out that the expansion of the amount managed offsets any percentage decrease, a situation that explains why the income of the administrators remains at record levels despite the regulatory adjustment.

He explained that the neoliberal voices that support this model are concerned, more than the level of pensions that workers receive, that an adjustment to the system could modify the rules of this profitable market structure, supported by the commission on the balance that they currently charge.

“These profitable rules of the game are what are of interest, not the level of pensions, which is why they also threaten that a fundamental change to the pension system, such as President Sheinbaum reversing the pension system for Issste workers, would be very poorly received by the financial markets,” said the specialist.

The Afore market is concentrated in 10 administrators with an ownership structure that combines Mexican and foreign capital. Coppel leads with 19.8 percent of the market and almost 12 million account holders, it is a subsidiary of the Coppel Group, of the Coppel-Luken family. Banamex occupies second place with 14.3 percent of the market and 8.4 million accounts. Profuturo has 14 percent and 4.5 million members, owned by the BAL Group of the Bailléres family, owner of El Palacio de Hierro and the insurance company Grupo Nacional Provincial.

Azteca concentrates 13.7 percent and 8.3 million workers, of the Grupo Elektra-Grupo Salinas of Ricardo Salinas Pliego. Sura manages 13.2 percent and 4.9 million accounts, under the Suramericana Investment Group, of Colombian origin, while XXI Banorte brings together 12.1 percent and 6.9 million workers, in co-ownership with the IMSS. Pensionissste, the only public administrator, operates 4.2 percent of the market with one million 800 thousand accounts. Completing the Main list are Invercap and Inbursa.