In recent days, the government and experts have spoken about the initiative to reform the pension system that seeks to improve the quality of life during workers’ retirement, however, in addition to the proposed changes, the Retirement Savings System ( SAR) contains more elements that must be taken into account in order to have a smooth old age.
In this sense, the retirement fund managers (afores) are a key piece, since they are in charge of making the contributions that the State, employers and workers deposit in each account, generate good returns so that, at In the long term, your afore grants you the resources through the pension.
Therefore, it is important that from an early age it supervises the performance and services that its administrator grants, for this, the National Commission of the Retirement Savings System (Consar) presented the results of the comparative indicator of services of the Afores 2019 , also known as Afores Attributes and Services Measurer (+ MORE AFORE).
“The + MORE AFORE provides savers with an additional criterion for comparison among the 10 administrators, complementing the Net Performance Indicator (IRN), seeking to provide more elements to the worker to choose the afore that best suits their needs,” details the Consar.
What is evaluated?
The indicator is updated annually based on the coverage and quality of the services that the Afores provide to workers, this results in the administrators competing and thus offering a better performance to users, which in turn results in the elimination of bad practices.
According to Consar, the + MAS AFORE is grouped into four indicators (Operational Quality, Coverage, Voluntary and Solidarity Savings and e-SAR Services) that are made up of 14 sub-indicators and 67 variables.
Regarding Operational Quality, this indicator measures the time it takes for the afore to attend and complete 16 services such as partial or total withdrawals, registration of independent workers, receipt of voluntary contributions, among others.
“In the same way, it takes into account the quality with which the afore provides services to the worker, based on a reference from the industry itself,” Consar details in its technical report.
Regarding the Coverage indicator, it measures the presence of customer service branches distributed throughout the Republic of Mexico and non-contact customer service channels.
For its part, the Voluntary and Solidarity Savings indicator is based on the number of contributions and the number of workers who make voluntary savings.
The fourth indicator that corresponds to e-SAR Services, measures the attention given by each administrator to the requests that enter through the e-SAR portal, for example transfers, contributions and withdrawals of voluntary savings remotely, links that promote voluntary savings , pre-registration of requests to afore or, pre-withdrawal requests, and even value-added services such as chats and personalized attention via remote.
Other factors to consider
The + MAS AFORE provides the necessary elements to make an intelligent decision when choosing or changing afore, but it is also important not to forget three basic elements that make up an administrator, since their finances will depend on their future pensioner.
What are those three elements? The first is the net return, which is the earnings that your afore will leave in your individual account; the second is the commission charged by the afore for managing its resources and which currently has an average SAR of 0.92%; The third element is the services that your administrator grants you, for example, service channels, partial withdrawals, care in your offices, etc.
“It is estimated that choosing an afore with high yields and low commissions instead of an afore with low yields and high commissions can mean, in the long term, a pension 25 to 30% higher or lower, respectively,” said Consar.