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Did you make an early withdrawal of your Afore? That is what it’s best to take into account

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What are the points that we should bear in mind if we make or are about to decide like this?

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This text was translated from our Spanish version utilizing AI applied sciences. Errors could exist as a consequence of this course of.

In instances of emergency equivalent to now we have skilled in latest months, you will have wanted to make an early withdrawal out of your Retirement Fund Administrator (Afore) . In truth, in keeping with information from the Nationwide Fee of the Retirement Financial savings System (Consar) , within the interval between January and June 2021, 938 thousand withdrawals had been registered by workers who haven’t paid their Afore for greater than 46 days.

What are the points that we should bear in mind if we make or are about to decide like this?

The very first thing that Lockton México , specialists within the design and implementation of retirement plans, recommends is that if you end up in want of withdrawing cash out of your particular person account as a consequence of unemployment, return it after you have one other job.

“Lets say the case of an individual who started to contribute to Social Safety for the primary time from July 1997. Earlier than shedding his job, firstly of 2020, he was contributing with a wage of 13,600 pesos per 30 days (approx. 5 UMAs) and had 750 weeks listed with the IMSS (simply over 14 years). This individual had an amassed quantity in his Afore of 252,000 pesos. She requested a withdrawal for unemployment firstly of the quarantine and the quantity that they licensed to withdraw was 31,000 pesos. This implied a discount of 92 weeks of contribution ”, explains Ana María Montes, director of Actuarial Consulting at Lockton Mexico.

When finishing the method for retirement on the Mexican Social Safety Institute (IMSS), the individual talked about above would face two situations:

Situation 1: Scenario for not returning the assets

  • The correct to a month-to-month pension could be denied for not crediting the minimal variety of weeks contributed (750 weeks in 2021). Even so, this individual could be entitled to obtain the quantity amassed in his retirement fund.
  • You’ll lose the appropriate to obtain well being take care of life (within the IMSS), since you don’t accumulate the minimal variety of weeks of contributions, that are 750.

Situation 2: Scenario to return the assets

  • Upon returning the cash, the 92 weeks of contributions are restored and with it the appropriate to obtain a assured minimal pension of 5,770 pesos per 30 days.
  • The individual could have the appropriate to obtain well being take care of life. And right here you will need to spotlight that the price for any surgical intervention exceeds the 31,000 pesos that he withdrew from his particular person account.

What are the minimal situations required by the Social Safety legislation to be entitled to a pension?

Based on the 1973 Legislation, which applies to all those that contributed to the IMSS for the primary time earlier than July 1997, the necessities are:

  • Be at the very least 60 years of age.
  • Have a minimal of 500 weeks listed and acknowledged by the IMSS.
  • Being within the interval of conservation of rights (not having stopped contributing to the IMSS for greater than the equal of 1 / 4 of the time you’ve gotten as weeks of contributions).

Based on the professional:

“From the 1973 legislation you will need to keep in mind that the month-to-month pension to be acquired is determined by the contribution wage registered within the final 250 weeks of contributions, on the age and variety of weeks contributed earlier than the IMSS. After you have the minimal of 500 weeks of contributions, for every extra 12 months of contributions (52 weeks) the pension will increase by 2% on common. To the extent that we’re capable of accredit the higher variety of weeks of contributions, a greater month-to-month pension may be obtained beneath the 1973 Social Safety Legislation ”.

For its half, the 1997 Legislation , which applies to all those that contributed to the IMSS for the primary time as of July 1997, considers the next:

  • Be at the very least 60 years of age.
  • Have a minimal of 1,000 weeks listed and acknowledged by the IMSS.

Based on Lockton specialists, a transition interval was established for the 1997 legislation the place fewer weeks of contributions will likely be required to qualify for the pension, in keeping with the desk proven under:

Picture: Courtesy of Lockton.

Beginning in 2031, the minimal required weeks will stay at 1,000.

Pay attention to what you want and don’t forget to go to an professional when you want it.

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