Did you make an early withdrawal of your Afore? This is what you should consider


What are the aspects that we must take into account if we make or are about to make a decision like this?

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This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.


In times of emergency such as we have experienced in recent months, you may have needed to make an early withdrawal from your Retirement Fund Administrator (Afore) . In fact, according to data from the National Commission of the Retirement Savings System (Consar) , in the period between January and June 2021, 938 thousand withdrawals were registered by employees who have not paid their Afore for more than 46 days.

What are the aspects that we must take into account if we make or are about to make a decision like this?

The first thing that Lockton México , specialists in the design and implementation of retirement plans, recommends is that if you find yourself in need of withdrawing money from your individual account due to unemployment, return it once you have another job.

“Let’s imagine the case of a person who began to contribute to Social Security for the first time from July 1997. Before losing his job, at the beginning of 2020, he was contributing with a salary of 13,600 pesos per month (approx. 5 UMAs) and had 750 weeks listed with the IMSS (just over 14 years). This person had an accumulated amount in his Afore of 252,000 pesos. She requested a withdrawal for unemployment at the beginning of the quarantine and the amount that they authorized to withdraw was 31,000 pesos. This implied a reduction of 92 weeks of contribution ”, explains Ana María Montes, director of Actuarial Consulting at Lockton Mexico.

When completing the process for retirement at the Mexican Social Security Institute (IMSS), the person mentioned above would face two scenarios:

Scenario 1: Situation for not returning the resources

  • The right to a monthly pension would be denied for not crediting the minimum number of weeks contributed (750 weeks in 2021). Even so, this person would be entitled to receive the amount accumulated in his retirement fund.
  • You would lose the right to receive health care for life (in the IMSS), since you do not accumulate the minimum number of weeks of contributions, which are 750.

Scenario 2: Situation to return the resources

  • Upon returning the money, the 92 weeks of contributions are restored and with it the right to receive a guaranteed minimum pension of 5,770 pesos per month.
  • The person will have the right to receive health care for life. And here it is important to highlight that the cost for any surgical intervention exceeds the 31,000 pesos that he withdrew from his individual account.

What are the minimum conditions required by the Social Security law to be entitled to a pension?

According to the 1973 Law, which applies to all those who contributed to the IMSS for the first time before July 1997, the requirements are:

  • Be at least 60 years of age.
  • Have a minimum of 500 weeks listed and recognized by the IMSS.
  • Being in the period of conservation of rights (not having stopped contributing to the IMSS for more than the equivalent of a quarter of the time you have as weeks of contributions).

According to the expert:

“From the 1973 law it is important to bear in mind that the monthly pension to be received depends on the contribution salary registered in the last 250 weeks of contributions, on the age and number of weeks contributed before the IMSS. Once you have the minimum of 500 weeks of contributions, for each additional year of contributions (52 weeks) the pension increases by 2% on average. To the extent that we are able to accredit the greater number of weeks of contributions, a better monthly pension can be obtained under the 1973 Social Security Law ”.

For its part, the 1997 Law , which applies to all those who contributed to the IMSS for the first time as of July 1997, considers the following:

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

According to Lockton experts, a transition period was established for the 1997 law where fewer weeks of contributions will be required to qualify for the pension, according to the table shown below:

Image: Courtesy of Lockton.

Starting in 2031, the minimum required weeks will remain at 1,000.

Take note of what you need and do not forget to go to an expert if you need it.



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