Thanks to the Law that allows the withdrawal of up to 4 UIT from the AFP, many compatriots have already requested this benefit. In this way, they will be able to count on liquidity of up to S /. 17 600. This amount will help many families cushion the expenses they have been having in recent months as a result of the pandemic and the state of emergency.
If you are lucky enough to have your money in the AFP and you can withdraw it, we advise you to make a conscious use of this money; After all, we are not sure how our economy, or the country’s economy, will perform in the coming months or years.
Debt payment: the best way to use your money from the AFP
The best way to use the money that you will withdraw from the AFP is to pay your debts. This is important if we take into account that our debts do not allow us to have a stable personal economy.
Why is it a good idea to pay your debts with money from the AFP?
We must consider that the payment of the monthly payments includes not only the money borrowed, but also the commissions and interest charged by the financial institution that gave us the money. If we pay the total of our debts, we will save a lot of money in commissions and interests; which we can take advantage of to start our own savings fund.
Wasting money is not the best option
The money that you are allowed to withdraw from your pension fund was destined for your retirement. By withdrawing part or all of the money (depending on how much you have saved) you are running out of said fund, therefore, if you have chosen to withdraw the 4 UIT from your AFP, or part of it, we recommend that you do not waste that money that you were going to serve for the future. Instead, if there is no rush to pay all of your debts (or part of them) you could also invest this money.
Some options to invest your money are:
- Fixed term deposits.
- Mutual funds.
- Opening a business. Etc.
If you have decided to use the amount withdrawn from your AFP to settle your debts, we recommend the Pool program. Through this we negotiate the payment of your debt, in a massive way, to obtain greater benefits in the settlement (for example, pay less interest). Contact us for more information.