Private Pension Fund Administrators (AFP) They manage the contributions of the workers with the aim of increasing their capital in the long term and guaranteeing an adequate pension in the retirement stage. During the last 31 years, the Private Pension System (Spp) It has achieved an average nominal profitability of 10% per year. This situation has generated questions about the affiliation process and the existence of an age limit to enter the system.
In Peru, four AFP operate in the market: Habitat, integrates, cousin and profutur. However, those who first join the SPP must join the AFP winner of the tender. Currently, this is AFP integrates, but as of June 1, the manager will be profuturo AFP.
What is the limit age to join an AFP?
According to the AFP Association (AAFP), there is no age limit to join the private pension system. However, it is recommended to enter at an early age to accumulate a greater number of contributions and obtain better profitability, which translates into a higher pension in the future. “There is no fixed age to join an AFP, but it is advisable to join at an early age to accumulate more years of contributions and take advantage of greater profitability. This will have a greater background for your retirement, ”said the AFP Association (AAFP).
The pension fund growth is based on individual capitalization accounts (CIC)which are registered in the name of the affiliate and generate profitability over time. This mechanism allows money deposited to increase its value until retirement.
Those who enter for the first time and opt for the SPP are automatically affiliated with their employer. Independently, self -employed workers can manage their registration and make their contributions through AFPNET or by automatic debit. It should be noted that the members of the affiliates are protected, since the CICs are intangible and unattachable. This means that they cannot be retention, discount or embargo.
You started working: How can you first join an AFP?
Workers can choose between two pension systems: the public and the private. The first, administered by the Pension Standardization Office (ONP)works under a common fund scheme, where the contributions of all affiliates finance the payment of pensions.
On the other hand, the SPP, managed by the AFPs, assigns the contributions to an individual capitalization account (CIC). Unlike the state system, these funds belong exclusively to the affiliate and generate profitability over time. According to the AAFP, in the last three decades, the SPP has registered an average nominal profitability of 10% per year.
The workers who enter the payroll for the first time are Affiliates for its employer, who is responsible for registering them in the chosen pension system.
How does the AFP system work?
The AFP manage pension funds with the purpose of growing in the long term. To do this, each worker makes monthly contributions equivalent to 10% of their salary, which are deposited in their CIC.
Additionally, a 1.37% discount is applied to cover disability insurance, survival and funeral expenses, which is administered by an insurer. A commission that varies according to the AFP chosen.
Source: Larepublica
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
