AFP Retirement 2024: between investing in time deposits, mutual funds or a property

With the approval of Law 32002, which authorizes the seventh extraordinary withdrawal of up to 4 UIT (S/20,600) from the AFP, and the publication of the schedule, this June 14 the withdrawal of the first army of pension funds would be carried out being up to 1 UIT (S/5,150). Given this, more than one member has wondered what to invest this possible injection of capital in. Here we tell you.

The last withdrawal meant the departure of S/2,094 million. This could translate into the potential exit of S/35,000 million from the system. Faced with this, Jorge Carrillo, professor and finance expert at Pacífico Business School, proposes traditional term deposits, mutual funds or real estate as investment options.

Taking into account that there are 41 traditional financial entities, including banks (16), financial institutions (8), municipal savings and credit banks (12) and rural savings and credit banks (5) and that all of them have an Insurance Fund of Deposits that covers savings of up to S/122,420 including interest earned, the traditional term deposit becomes an attractive option for those who decide to invest.

Furthermore, regarding the rates of traditional financial entities, these depend on the amount and the agreed term, but could reach up to 8% annually. In the case of savings banks, the consensus is between 7% and 7.5%, compared to previous historical levels of 10% to 12% with a higher reference rate and much more auspicious for the profitability of clients and the boxes themselves.

On the other hand, the term deposit in cooperatives, although it is not such a safe option because these institutions do not have the Deposit Insurance Fund, but will only have a Cooperative Fund by 2025 that will cover a maximum of S/10,000 for the large cooperatives and S/5,000 for small ones, can generate greater profitability. In Peru, there are more than 250 savings and credit cooperatives (Coopac) registered with the SBS, which can offer higher interest rates for term deposits from banks, financial institutions or savings banks.

Likewise, mutual funds are investments with variable profitability, which will depend on the types of instruments purchased. That is, fixed income funds are safer, but less profitable; while equity funds are riskier, but could provide higher returns.

On the other hand, there are also mixed income funds, which are a midpoint between both options. Carrillo points out that there are more than 220 products of this type on the market.

Furthermore, another investment proposal could be found in the acquisition of a property. In that sense, With the money from the pension funds the initial payment for an apartment could be completed, and the rest of the money could be obtained through a mortgage loan.

“This alternative would be highly recommended if, for example, today you live in a rented property, since the rental amount would be replaced with the loan payment (without altering the family budget too much), in addition to acquiring a long-term asset” explains Carrillo.

How to register my request for withdrawal?

Before making the first optional withdrawal, members will have to register their request, one time and 100% digitally through the route www.solicitaretiroafp.pe, indicating the total amount they want to extract from their savings, taking into account that this should not exceed S/20,600. This amount will be paid in four disbursements of 1 UIT (S/5,150) each.

Along these lines, the registration of applications will be enabled from Monday, May 20 to August 17, complying with the 90 calendar days established by law. From May 20 to July 1, members will be able to access on established days according to the last digit of their ID (see table). Then, from July 2 to August 17, registration of applications will be free.