The Private Pension System in Peru operates through Pension Fund Administrators (AFP), where contributions are deposited in individual capitalization accounts.
The Private Pension System (SPP) is developed through private entities called Pension Fund Administrators (AFP). In this model, workers’ contributions are deposited in a Individual capitalization account (CIC), which facilitates the accumulation of resources for future retirement.
The workers In Peru they can have doubts about whether there is an age limit to join an AFP. For this reason, it is important to know what the regulations are. In general, it is relevant to mention that the Congress Del Peru has presented a bill that seeks to authorize a new retirement of funds, which could offer a solution to those who are in this difficult situation.
Is there any limit age to join an AFP?
The AFP Association (AAFP) indicates that there is no age Specific to join an AFP. However, it is suggested to do so from an early age. This allows to accumulate more years of contributions, which in turn maximizes the profitability. In doing so, a more robust fund for retirement is guaranteed, ensuring a better quality of life in the future.
It should be remembered that, when starting a work on the payroll and opting for the private pension system, the responsibility of the affiliation falls to the workers’ employer. However, if you work as Independent workeroneself have the option of managing your affiliation autonomously.
What happens if AFP affiliates stop contributing?
The AFP Association has indicated that, in case the affiliates decide to suspend their contributions, the fund will continue in its individual capitalization account, which is duly registered in its name. Likewise, the Pension Fund Administrator will continue to generate profitability for the worker. This may consult the status of your account at any time, either through the OA website through the mobile application of your AFPthus facilitating access to information from anywhere.
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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.
