When a person enters work formally, they can choose between the different Administrators of pension funds (AFP) so that they are in charge of managing the money that they deduct from your retirement fund. However, many people do not know which AFP they are affiliated with and that causes problems when carrying out the process or simply viewing their account statement. In this Depor note we show you how you can know which AFP you are affiliated with.
How do I know how much money I have in my AFP in 2023?
To find out the amount you have saved in your pension fund, according to the AFP to which you belong, you just have to activate your account in any of the following links:
How do I know which AFP I am affiliated with?
If you don’t know which AFP you are affiliated with, don’t worry, since here we show you the step by step so you can obtain this important information:
- Login to Superintendency of Banking, Insurance and AFP (SBS).
- Go to the “Inquiries and procedures” section. If you do not have an account, “Register”, but first read the conditions of use and if you agree, accept them and click “Next”.
- Enter your ID number and an email. You will receive a verification code and after that you can activate your account.
- Once you have registered and can access with your username and password, choose the “Pension situation report” option and that’s it.
- If you are a foreigner, click on the corresponding option that will appear in point 3.
What are AFPs?
The Pension Fund Administrators (AFP) are private organizations that assume the responsibility of managing the financial resources destined for retirement, within a framework of individualized accounts. These entities were born in 1993 and carry out their activity in the field of the Private Pension System (SPP).
The AFPs play a significant role in providing benefits in the form of pensions, covering areas such as retirement, disability, and survivor protection. Additionally, they also play a role in assisting with funeral costs.
How much do I get a discount to deposit it in my AFP?
- 10% of your salary goes to your pension fund (amount depends on the salary)
- Commission for administration of the AFP.
- The discount depends on whether the affiliate is on flow commission (between 13.21% and 13.43%) or on mixed commission (between 11.74% and 12.41%).
What is the difference between the ONP and the AFP?
Having to choose between a Pension Fund Administrator (AFP) and the system of the Pension Normalization Office (ONP) in Peru is a crucial decision, since the economic future of workers after their retirement will depend on it.
In the AFP scheme, the amount of the pension that will be received is influenced by two factors: the level of savings accumulated throughout one’s working life and the profitability generated by the administrators’ investments. Here, the responsibility falls on the individual to manage his contribution and the way in which he invests his funds.
Meanwhile, the ONP model takes a different approach. Here, workers’ contributions are added to a common fund that will serve as a source for pensions for multiple beneficiaries. But there is something very important to keep in mind: individual contributions do not generate profitability, that is, there is no additional increase.
This difference directly impacts the magnitude of pensions that workers can expect. Those who opt for an AFP have the opportunity to optimize their savings and make them grow; while those who choose the ONP will obtain a pension determined only by the amounts contributed.