AFP: How much should my fund have to receive a pension of S/1,000 when I retire?

As time goes by we start to plan for the long termand one of the unknowns of this planning is how our retirement. For this reason, it will be better to anticipate from a young age and start acquiring healthy financial habits that aim to achieve a single objective: achieve a good level of retirement. In the following note we will tell you how to finance our old age and fill our little piggy bank to make sure we have resources until the last day of our lives.

AFP: how to finance our old age?

According to the president of the Peruvian Association of Insurance Companies (Apeseg), Eduardo Morón, in order to live peacefully in our old age and receive close to S/1,000 when we retire, we must take this data into account.

• To ensure a “financial piggy bank” of savings and have a retirement of the amount indicated, it will be necessary to accumulate a fund of S/180,000. In this way we will use a financial instrument called annuity.
• Make a monthly budget and thus recognize our ability to save.
• Build a financial future with an income layer.

In other words, according to AFP Integra calculations, to have a pension of S/1,000, the affiliate must have a fund of between S/175,000 and S/250,000, taking into account the additional data.

What is the life annuity?

The life annuity is a financial instrument that implies a transfer of resources to an insurance company specialized in life-savings, and they are in charge of depositing that amount of money for life. The purpose of this is to provide an income to the user.