Private Pension Fund Administrators (AFP) They manage the pension savings of workers in order to increase their capital in the long term and ensure adequate pension at the time of retirement. During the last 31 years, the Private pension system (SPP) It has registered an average nominal profitability of 10% per year. This context has generated questions about the requirements to join and the existence of an age limit to enter the system.
In the Peruvian market, four AFP provide their services: habitat, integral, cousin and profutur. However, those who register for the first time in the SPP must join the AFP that has won the corresponding tender. Currently, AFP integrates this position, but as of June 1, Profuturo AFP will assume this responsibility.
Affiliation to an AFP: What is the maximum age?
According to the AFP Association (AAFP), the private pension system does not establish a Age limit for affiliation. However, it is recommended to initiate savings from an early age to accumulate greater contributions and obtain better profitability, which translates into a higher pension at the time of retirement.
“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 the individual capitalization accounts (CIC), which belong to each affiliate and generate profitability over time. This mechanism allows capital deposited to increase its value until retirement.
The workers who enter a form for the first time and opt for the SPP are automatically affiliated with their employer. On the other hand, independent workers can carry out their voluntary registration through AFPnet or through Automatic debit. In addition, the funds accumulated in the CICs have legal protection, since they are intangible and unattachable, which prevents their retention or discount.
Did you start your working life?: Discover how to join an AFP for the first time
Employees can choose between two pension systems: the public and the private. The public system, administered by the Office of Pension Standardization (ONP), It works under a common background scheme, where the contributions of the affiliates finance the pensions of the retirees.
In contrast, the Sppmanaged by the AFPs, assign contributions to a personal 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 maintained an average nominal profitability of 10% per year, which has allowed the growth of the capital of affiliates.
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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.
