- AFOREs (Retirement Funds Administrators), are the centerpiece of Mexico's Retirement Savings System
- They are private companies (typically part of larger financial or insurance institutions) that offer heavily regulated accounts where workers invest their retirement fund.
- Each one can choose the AFORE they want to join, but it is mandatory to have one.
- The retirement funds can only be accesed upon retirement. AFOREs invest the money both in the Mexican Stock Exchange exclusively
- Given that the money will only be accessed upon retirment, which may be dramatically closer/further away depending on worker age, AFOREs are broken up into 4 age brackets (18-36, 36-45, 46-55, 56-65). The closest one is to retirement age (65 years), the less risk the Siefore is allowed to take on.
- Each AFORE company chooses their investment strategy (within the regulations)
- Very different yields depending on company and worker age!