Set aside part of your Christmas bonus to your retirement account

By Notimex Wednesday, December 13, 2017 comments

For Mexican workers that allocate 1,000 pesos of their Christmas bonus to their Afore each year, they could get 12% more in their accumulated balance.



Remember that according to the Federal Labour Law, if you are an employee, you have the right to receive your annual Christmas bonus before December 20th. However, bonuses are commonly used by most to meet year-end expenses without considering that there are intelligent alternatives to make that money grow.


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If a worker receives three minimum wages as a bonus and saves 1000 pesos annually from the first year he receives it up until retirement age, he could have a cumulative balance of 12% greater than the amount that would be obtained if he only contributed 6.5% of the base salary of contribution to his Afore.


In the same way, for a saver who receives four minimum wages and who will allocate 3,000 pesos per year of bonuses, the accumulated balance would be 29% higher. In the event that someone receives five salaries and could save 5,000 pesos, they could have an accumulated balance 40% higher than the final amount.


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Using part of your Christmas bonus can be a very good opportunity for you to start investing and not just leave your money saved. The investment makes your money grow and if you invest it for several years the yield will be much higher thanks to compound interest.  


Neil Emberson, Director of KNG International Advisors, an investment planning agency operating throughout Mexico says; “that retirement is a long-term financial goal that can be positively impacted from today”.


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He adds that by exploring the potential of this extra end of year income in our finances, it allows us to see it as a generator of wealth.


In recent years, CONSAR has placed particular emphasis on motivating workers to know about their financial future, which is why it has created the new Savings and Retirement Calculator and the two Calculators in AforeMóvil, for workers.


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If you are interested in finding out how to make your Christmas bonus reap financial rewards, visit