During the debate on the amount of retirement at the time of retirement, the Association of Pension Fund Administrators announced the available options.
Remember that one option for retirement savings that both dependent and independent workers have is to contribute to the private pension system (SPP).
In the case of dependent employees, these persons pay 10% of their monthly remuneration to the individual capitalization account in AFP, from which the administration was created in order to achieve profitability of savings until retirement.
How can you get a better fund and retire?
According to the AAFP, starting the contribution from an early age is necessary to benefit from profitability, because the contribution made by the employee will have a larger time horizon.
"For example, the average annual return on funds in AFP since its inception was 11.5%; this means that if you decide to make a contribution with a delay of one year, you will stop earning such a rate for your savings – says in his statement.
Similarly, the number of months you spend in your professional life, called premium frequency, is the most important element in determining a better fund and retirement.
Therefore, it is recommended that when an employee moves from work on the payroll to pay fees (independent employee), he continues to pay contributions in accordance with the amount received. Current pensioners who have paid less than 60 months have a replacement rate (pension as part of their last salary) of 32%, while those who have contributed for over 240 months have a replacement rate of 72%.
"The amount contributed to the fund will be determined on the basis of income received as remuneration, which is the basis for allocating 10% of this amount to retirement savings. However, if it is desired to increase savings, there is a voluntary form of contribution, which can be without a pension or social security; and that in both cases it generates the same return on funds (1, 2 and 3) ", it presents the AAFP in detail.
The profitability of funds is important and will depend on how adverse the risk is. Fund 1 is the most conservative, assumes little risk and its long-term profitability is low compared to the other two funds; Fund 2 has a mixed risk profile, and Fund 3 assumes a higher risk to achieve a return over the others.
Do you want to know how much your pension will be?
The retirement calculator is a very useful tool that a partner can find on his AFP website, which will help him get a forecast of his future retirement. This will allow you to get an approximate amount, taking into account various aspects, such as profitability, premium amounts, premium density or premium frequency.
Access to the AFP retirement calculator can be obtained from the AFP Association website:
https://www.prima.com.pe/wcm/portal/primaafp/ayuda/ayuda-para-personas/her Tools / simuladores_de_ahorro_e_inversion