You want to change your fund in your AFP, but you don’t know if you can go back to the same level or change others. If you want to switch to a riskier one to increase your pot or you want to switch to a more conservative one with a view to your future retirementhere we indicate how many times you can change and what you should take into consideration.
In the Private Pension System (SPP), the types of funds are the various alternatives that exist so that members can invest their contributions, which will generate long-term profitability; that is, they will increase your retirement savings. But what happens if I switch and I don’t have the return I want or it was actually very risky?
HOW MANY TIMES CAN I CHANGE MY AFP FUND?
It can change as it progresses and the different aspects of your life develop. You can choose to switch from a more conservative fund to a more risky one (Fund 0 or Fund 3) or vice versa, but there are things you should keep in mind.
Some of the changes are made automatically, for example, once you reach a certain age, your Fund is immediately at 0, since you cannot risk losses as you are close to retirement.
If you are young, Fund 3 is a great option because you take a little more risk and there is the possibility of having higher profits. Now, if you are not willing to take any type of risk, Fund 2 (mixed fund) is also available and is the one you access when you go to an AFP.
HOW CAN I CHANGE MY AFP FUND?
There are two ways to change the type of fund:
Face-to-face
The change request is submitted to the AFP agency that manages your CIC, attaching a copy of your identity document. Save the application accepted by your AFP as proof that the process has been completed. It will serve you for any subsequent claim.
Virtual
The change request is submitted through your AFP’s website, requiring a private security key. When you have this, you will register an electronic application and your AFP will provide you with a registration number, under the status “application submitted”, which you can print directly. If you meet the required requirements, your fund change will proceed.
HOW LONG DOES IT TAKE FOR THE FUND CHANGE TO BE EFFECTIVE?
The change of fund is effective from the sixth day of the following month, according to AFP Profuturo
When can I change my background again?
You can enter a new request from the 1st day of the 2nd month that you subscribed your fund change request.
WHAT ARE THE TYPES OF PENSION FUND?
The Pension Fund Administrators (AFP) are in charge of administering four types of pension funds in order to obtain profitability that allows them to increase the Individual Capitalization Account of their members. Contributors can choose according to the type of investment and level of risk that suits their needs. Here are the four types of AFP funds:
Fund 0: capital protection
It is a conservative fund and considered only for members over 65 years of age or who are already in the retirement process. Your fixed income is 100%.
- Cost effectiveness: steady.
- Risk level: minor
- Recommended for: members who are 65 years of age or older and those who are about to retire.
Fund 1: capital preservation
It focuses on the conservative affiliate. The risk is low and the return is only 10% and 90% fixed income.
Cost effectiveness: steady.
- Risk level: minor.
- Recommended for: members 60 years of age or close to retirement.
Fund 2: balanced or mixed
The risk is moderate, so the return is 45% and 55% fixed income. 72% of SPP affiliates are in this fund.
- Cost effectiveness: half.
- Risk level: medium.
- Recommended for: members between 45 and 60 years old.
Fund 3: capital appreciation
It focuses on people who start their working life and start making contributions. High risk with the possibility of obtaining great opportunities for long-term profitability.
- Cost effectiveness: high.
- Risk level: elderly.
- Recommended for: Members up to 45 years old.
