Afore Unemployment Withdrawals Soar 21%; Workers Take Out Over 18 Billion Pesos

Mexican workers are increasingly tapping into their retirement savings due to job losses. Between January and May of 2026, withdrawals for unemployment from Afore accounts exceeded 18.2 billion pesos. This figure marks a significant 21% increase compared to the same period last year. The data from the National Commission of the Retirement Savings System (Consar) indicates that 173,826 workers utilized this benefit during the first five months of the year, a 10.4% rise from the previous year. The unemployment withdrawal is a provision within Mexico's Retirement Savings System (SAR) that allows workers to access a portion of their individual account funds when they lose formal employment. However, Consar consistently warns that these withdrawals negatively impact long-term retirement savings. They reduce the accumulated balance and can affect the number of contribution weeks, especially if the withdrawn funds are not repaid. Afore Coppel saw the largest amount of unemployment withdrawals, totaling 3.97 billion pesos in the first five months of 2026. Afore Azteca followed with 3.09 billion pesos, and Afore Banamex recorded 2.65 billion pesos in such withdrawals. Despite the surge in unemployment withdrawals, the administrators of retirement funds reported positive investment returns. By the end of May, the Afore system accumulated capital gains of 476.4 billion pesos, a 5.5% annual growth. These gains stem from investments made by Afores in both domestic and international financial instruments, playing a key role in boosting retirement savings.