Retirement in Mexico: Is Your Afore Not Enough? Discover how to supplement it with BBVA investments for a golden future.

Worried about whether your Afore will be enough to live the retirement you dream of? You're not alone. This essential guide explores how BBVA's investment products can help supplement your retirement savings, with examples and profiles to help you start planning today!

Retirement planning in Mexico is a topic that raises many questions, and one of the most common is: Will my Afore really be enough? For many, the answer is that you need something extra. Fortunately, there are strategies and financial products, like those offered by BBVA, that can help you build an additional cushion and ensure a more comfortable and financially stable retirement.

Retirement Fund Administrators (Afores) are the backbone of the Mexican pension system. Your individual account accumulates mandatory contributions from the employee, employer, and government. However, several factors can influence the final amount to be unrealistic:

• Contribution weeks: A minimum number of weeks is required to be eligible for a pension.
• Salary level: Contributions are linked to your salary.
• Returns: Although Afores invest your money, returns vary.
• Commissions: Afores charge commissions for managing your funds.

This is why considering supplementing your Afore is not a luxury, but a necessity for many.

Relying solely on the Afore can leave you vulnerable in retirement. Supplementing your savings offers you:

• Greater financial peace of mind: Having additional sources of income reduces stress.
• Possibility of a better standard of living: You'll be able to cover not only your basic needs, but also enjoy activities and hobbies.
• Protection against unforeseen events: An extra financial cushion is always helpful.

BBVA offers a variety of long-term investment and savings options designed to help you achieve these goals.

While BBVA does not offer Personal Retirement Plans (PPRs) with the specific tax benefits offered by other specialized institutions, it does offer investment instruments that, when managed with a long-term vision, can play a similar role in accumulating capital for retirement.

• BBVA Long-Term Investment Funds: What are they? These are instruments that pool the money of many investors to purchase a diversified basket of assets (stocks, bonds, etc.).
• Advantages for retirement: They reduce risk by not putting all their eggs in one basket.
• Professional management: Experts manage the fund, seeking the best returns based on the fund's profile.
• Accessibility: You can start investing with relatively small amounts. Types to consider: Look for funds with growth strategies or balanced funds that seek to preserve capital and generate moderate returns over the long term. BBVA offers a range that fits different risk profiles.
• Example: An equity fund might offer higher returns over the very long term (assuming greater risk), while a debt fund might be more conservative.

• Strategy: BBVA allows you to set up recurring savings mechanisms or direct debits to automatically invest in your chosen funds. This encourages discipline.
• Benefit: Compound interest works wonders over the long term. Small amounts invested regularly can grow significantly over time.

It is impossible to give exact figures without a personalized analysis, but let's look at scenarios:

• Young Profile (25-35 years):
• Objective: Maximize growth. Can take on more risk.
• BBVA Strategy: Invest a monthly amount (e.g., $1,000–$3,000 MXN) in BBVA investment funds with a higher equity component. The time horizon is long.
• Impact: Over 30-40 years, even modest contributions can generate considerable capital thanks to compound interest and potential returns.

• Adult Profile (36-50 years):
• Objective: Sustained growth, beginning to balance with preservation.
• BBVA Strategy: Increase the monthly contribution amount (e.g. $3,000 – $7,000 MXN) to BBVA funds, perhaps diversifying between growth funds and more balanced or debt funds.
• Impact: There is still time for capital to grow, but it is crucial to be consistent

• Retirement Profile (51+ years):
• Objective: Capital preservation and stable income generation. Reduced risk tolerance.
• BBVA Strategy: Focus on more conservative BBVA investment funds (debt, fixed income) and evaluate options that can generate regular cash flows. It's time to consolidate what

  saved.

• Define your retirement goals: How much money will you need each month?
• Evaluate your current situation: How much do you have in your Afore? How much additional savings can you make?
• Contact a BBVA advisor: An expert can help you define your investor profile and choose the most suitable funds or products for you.
• Establish a plan for regular contributions: Consistency is key.
• Review your plan annually: Adjust your contributions or strategies based on your circumstances and the performance of your investments.

Don't leave your future to chance. Supplementing your Afore with BBVA investment products is a smart strategy to ensure the retirement you deserve. The best time to start is now!

Follow us on our X La Verdad Noticias profile and stay up to date with the most important news of the day.