The Pension Fund Administrators give you the opportunity to make additional savings to the mandatory by law. With this capital, you can make from an investment in the medium and long term, to improve the conditions of your pension. You can learn about it by reading this article, where we tell you what is voluntary AFP savings.
What is a voluntary contribution?
The Pension Fund Administrators or AFPs are within the existing financial institutions in Peru. These are responsible for managing the pension fund to which by law you quote a percentage of your salary. This fee is called mandatory contribution, and its objective is to finance your future retirement pension.
However, the AFPs also function as a kind of savings entity that collects money from the public. When you make an additional contribution to the mandatory in an AFP, you are making a voluntary contribution to it. And in this way of saving, it is known by the name of voluntary savings AFP.
Voluntary savings have two modalities, which we describe below:
AFP voluntary savings for social security purposes
This is a type of savings that is exclusively aimed at improving financial conditions at the time of retirement. This is because everything you save in this way, you can only have after the time of your retirement.
This particular way of saving allows you to:
- Have at the time of retirement all the capital you have saved with this instrument.
- Increase the fees you receive from the pension fund, once retired.
AFP voluntary savings without social security
This is a personal savings with a general purpose, whose capital you can have before your retirement occurs. That is, although it belongs to a pension fund, the purpose of saving has a different objective than retirement.
AFP voluntary savings without social security is nothing more than a form of medium and long-term savings. You can then use this savings instrument as a non-immediate term capital investment.
To learn more about the particulars of these savings instruments, we invite you to consult the pages of the AFPs. Next, we leave you the corresponding links.