The Retirement Savings Fund Administrators (Afores) They are a fundamental part of Mexico’s progress, and they emerge as the main player in the future development of the country, given the amount of resources they manage.
For David Razú, general director of Afore XXI Banorte, which is also considered the largest in Mexico and Latin America, when carrying out a investment of managed savingsthe Afores have a great shared responsibility with Mexico and the workers who entrusted them with their resources.
An example is that the investments they make are in many cases destined to strengthen areas such as country infrastructureso they also have the shared responsibility of making responsible investments and meeting the strictest investment criteria.
Although the main task of the Afores “is to ensure that Mexicans retire with as much as possible,” explained Razú, within the framework of the 87 Banking Convention, already being one of the main investors in the country.
To this end, macroeconomic stability in this six-year term has been fundamental, so the balance is favorable and must be recognized, he pointed out, because even with the negative effect of the pandemic, which caused a worldwide very strong impact on growthMexico was one of the first countries to recover.
“We are at historic highs in gross fixed investment, which tells you about the confidence that businessmen have in the country. That’s very positive. We are also at historic highs in foreign direct investment. The phenomenon of relocation has been gaining more strength and it is very important that we take advantage of it,” he noted.
The macroeconomic panorama in general also shows a very good performance of the debt and the financial requirements of the public sector, where stability has been found.
Furthermore, the Mexican banking sector, with its strength indicators, means that the country enjoys very good economic health, both macro and micro.
“Mexico is currently in a kind of virtuous circle. The Afores have a maximum of managed funds, with basically more than 6 billion pesos of managed resources”, which are partly invested in government paper.
Reforms that strengthen
An important part of the shared responsibility, between the Federal Government, the private initiative and the Afores, was the launch of various reforms that strengthened the system on various fronts.
First, increasing a guaranteed minimum pension for older adults, then the minimum wage was increased, outsourcing was regulated, with which more people were integrated, and informality decreased by three percentage points, which meant that there was more savings in the country. and also have a stronger labor market, he explained.
“So, the other reform that was very important in that sense was the 2020 Reform, which allowed a decrease in the number of weeks of contributions to access a guaranteed minimum pension and the first group was now able to have access to a pension for this change,” he added.
In addition, there will be a gradual increase in the contribution made by employers, which will allow for greater savings and pensions in the future.
For this reason, he stated with more than one trillion pesos in assets under his administration, Afore XXI Banorte is clear that its main mission and responsibility is to guarantee the highest possible performance for all Mexicans who have an account with them.
Also, the issue of improving care is fundamental, “during the pandemic, what corresponded to us in the retirement savings industry was to greatly facilitate the procedures for withdrawals due to unemployment, due to marriage, so that people could have the maximum available to them by law. would allow him from his resources.”
He recalled that important changes were made, as there is better remote care, but listening closely to workers and advising them is something that must be strengthened even more, so that they have all the tools to decide about their future.
