The Congress of the Republic of Peru is waiting for a new release of funds from the contributors of the AFPs (Pension Fund Administrators) to be approved so that Peruvians who work in the private sector and contribute to these funds can obtain a release They must have one withdraw a certain amount from their monthly deposits, as the prices of food, which is part of the family’s basic basket, have been rising for a long time.
To understand the situation, Depor has prepared this article with information about the projects that the country’s authorities are currently analyzing and the amounts that each one proposes. Remember that if approved, the payout will depend on how much money you have in your pension fund.
What proposals have been presented in Congress for the publication of the AFP in 2023?
There are currently several bills in Congress that propose allowing members to access their funds. Seven emphasize the population’s distress due to the increased cost of the family’s basic basket, while three point out that this money can be used to pay off debts. The amounts stated in each case are listed below.
- AFP withdrawal up to 4 UIT (S/19,800)
- AFP withdrawal of up to 3 UIT (S/14,850)
- AFP withdrawal of 50% of funds
- AFP withdrawal of 70% of funds
- AFP withdrawal of 50% of funds for home purchase
- AFP withdrawal of 3 ITU (S/14,850)
- AFP withdrawal of 5 ITU (S/24,750)
- AFP withdrawal of 4 ITU (S/19,800)
- AFP withdrawal of 25% to settle debts with mortgage guarantee
- 100% AFP payout for house purchase.
Can you currently request the withdrawal of your AFP?
Yes, thanks to Law No. 30478, members have the opportunity to request the release of 25% of their funds to be used for the down payment on their first home or to pay off the mortgage loan associated with that property. So, if you are thinking about buying a house or apartment, you can consider this option so as not to be completely dependent on your savings.
How much is deducted from your salary to pay into your AFP?
- 10% of your salary goes to your pension fund (amount depends on salary)
- Commission for the Management of the AFP.
- The discount depends on whether the affiliate receives a flow commission (between 13.21% and 13.43%) or a blended commission (between 11.74% and 12.41%).
How to find out the balance of your AFP in 2023?
Find out here the amount you have in your pension fund according to the AFP to which you belong.
What would happen to the Peruvian economy if withdrawal from the pension fund was allowed?
According to Moody’s, the possibility of contributors withdrawing part of their AFP could affect the government’s rating and credibility, thereby affecting Peru’s long-term finances.
When can you apply for AFP Retirement 2023?
There is no date yet as Congress is still considering whether contributors will be able to make additional withdrawals from pension funds. Remember that they have to determine the quantities and weapons and analyze the consequences.
What is the link to hold the AFP Retreat 2023?
The proposal has not yet been approved, so no link to complete the process has been shared. Remember that in this case the government will report through its official networks.
Why have they still not approved the projects proposing the AFP retirement in 2023?
The main reason is that the Congressional Commission on Economy, Banking, Finance and Financial Information, chaired by Fuerza Popular deputy Rosangella Barbarán, must put the issue on the agenda so that she and her work team can analyze each individual project.
How do you request the withdrawal of your AFP if you want to buy a house?
- The contributor must apply for a mortgage loan from a company regulated by the SBS (Superintendency of Banking, Insurance and AFP).
- After receiving the advance compliance document, the person can first apply to withdraw 25% of the pension fund.
- The AFP is now checking whether it meets the requirements and will announce later whether it agrees or not. If everything is in order, the payment will be made within 10 days.