Mexican Afores Gain MX$74.3 Billion in July, Down 10% from June

Mexican pension fund managers (Afores) posted gains of MX$74.3 billion in July, down 10% from June, according to the National Commission of the Retirement Savings System (CONSAR). Despite the decline, this marked the third consecutive month of positive returns, with Afores recording gains in six of the first seven months of 2025, totaling MX$608.5 billion.

The performance was supported by US stock market gains—S&P 500 up 2.2%—and expectations of interest rate cuts by Mexico’s Central Bank, which increase the value of debt securities. Afores manage retirement savings for 68.8 million accounts, with assets totaling MX$7.65 trillion.

CONSAR reported record unemployment withdrawals in July: 178,186 workers withdrew MX$3.6 billion. Year-to-date, 1.07 million withdrawals totaled MX$21.2 billion, an 18% increase from 2024. Regulators warn that withdrawals reduce account balances and pension eligibility, urging reinstatement when possible.

Afores’ net income rose 36% to MX$8.8 billion from January to July, driven by strong investment returns and higher mandatory contributions, now 9.15% of workers’ salaries, set to rise to 15% by 2030.