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AFP Retirement 2023: who will be able to benefit and in what situations will these funds be available?

Through the enactment of the Law No. 31670 in the official newspaper El Peruano on January 13, after being approved by the Congressa new withdrawal was authorized for AFP contributors, which may be made by a group of affiliates who set a savings goal during their years of contributions and, once they have accumulated the amount that they themselves established, it will be possible for them to dispose of the surplus in your AFP account.

In Peru, there are four private pension fund administrators: AFP Integra, AFP Prima, AFP Habitat and Profuturo. By law, everything formal worker approximately 13% of their assets are deducted. 10% goes to the retirement fund and the remaining balance is divided between commissions and insurance premiums.

What is known about Law No. 31670?

Law No. 31670 empowers contributors to the Private Pension System to access a minimum retirement remuneration, which will allow them to set a pension savings goal, so that when they retire they receive an amount no less than that corresponding to the basic family basket (S/378).

This regulation establishes that affiliates will be able to decide what to do with the surplus in their capitalization accounts.

This amount will be determined by subtracting the principal balance with interest from the individual capitalization account minus the minimum retirement balance.

“Someone who has a retirement savings of S/150,000 and sets a minimum pension limit of S/80,000, could withdraw S/70,000. Which will be transferred from their individual capitalization account to that of voluntary contributions without a pension purpose”, explains the specialist Jorge Espada.

Who are the beneficiaries and how much money can they have?

This legislation allows the MEF to expand the scope of contributors so that they can request refunds of 4th or 5th category income tax payments or any other tax or balance to be credited to their account.

Since it has just been published, this regulation lacks more details and exact precision for the public. For this, the Executive will have a period of 90 days to prepare the regulation, so that only in the month of April would all the information regarding this be available.

Source: Larepublica

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