PPR or Afore: how they differ

The Afore is the mandatory account that manages your retirement savings by law. You did not choose it as a strategy: it exists because you work. Its fees and investment regimes are regulated and identical for millions of people — one size for everyone.

A PPR is voluntary. You decide how much to contribute, in which instruments and with whom. Chosen well, it complements the Afore with higher-potential investments, such as index funds, and adds the tax deduction on top.

The Afore alone is almost never enough: the average replacement rate in Mexico falls well short of what people expect to live on. The difference between hoping it will be enough and knowing whether it will is a calculation, and that calculation is exactly what the Proyecto 5% calculator delivers.