Among the most complicated situations for workers is when they become unemployed and in this kind of case they have the right to make a partial withdrawal from their Retirement Fund Administrator (Afore), although what many do not know is that this type of decision may have consequences. Here we explain in detail.
Partially withdrawing the Afore allows you to face the expenses that you cannot deal with when you do not have a job, but if you do not replace said money, you may find yourself with problems in the future.
In fact, the Afore account is designed to cover people’s pensions when they finish their working life and reach old age.
In this way, workers can get a percentage of their savings for retirement due to unemployment, but this is only possible once every five years. Among the requirements is that the unemployed have 46 days without having worked.
How does it affect not replenishing the money from your Afore?
According to the drivingthe long-term consequences that a person may face due to the partial withdrawal of their Afore are the following:
Your weeks of contribution are reduced, generating the risk that you will reach the guaranteed minimum pension at the time you want to retire. What they advise is not to take this alternative when you are close to 60 years of age, especially if you have withdrawn more than once.
Another consequence that you may face is that the amount of your pension is less, since the Afore account is designed so that the resources contributed are doubled by compound interest.
It can affect the time in which you retire, because you will get a month of your contribution base salary and it can take more than a year to recover it.
It is necessary to understand the risks, and if you are in need, the Condusef suggests repaying the amount so as not to have to suffer the consequences in the future.
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