Which AFP?

Answers to your qestions about moving to, and living in, Peru,
Donny Spoel
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Which AFP?

Postby Donny Spoel » Fri Mar 25, 2011 10:52 am

I am signing a work contract next week. For pension I want to use the AFP system. I am searching on the internet and in this forum, but I can't find any information about which AFP has the best results/low costs etc. Anybody knows which AFP should I choose?

Thanks!
Donny


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fanning
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Re: Which AFP?

Postby fanning » Fri Mar 25, 2011 11:27 am

Every AFP will tell you theirs is the best, with the best results, safest, lowest commission etc.
If the company you are going to work in, ask them in which AFP most employees are affiliated with. Then just also register with that AFP.
Personally I use Prima, as it seems to have the lowest commision, and in our company most employees were already affiliated with that one.
More important is if you get the Plan 1, 2 or 3. In which the Plan 1 is the safest, with lowest profits, and 3 the most risky, with higher profits.
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bmike1
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Re: Which AFP?

Postby bmike1 » Fri Mar 25, 2011 11:44 am

higher POSSIBLE profits!
:-)~mike~(-:
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americorps
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Re: Which AFP?

Postby americorps » Fri Mar 25, 2011 12:23 pm

As Someone who helps expats withdraw their AFP´s when they leave Peru, I would suggest that Integra is the least customer friendly for that process.

I am ONLY speaking on the withdrawal process, not the money management aspect of any of the AFP´s.
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Re: Which AFP?

Postby seb2010 » Wed Mar 30, 2011 10:20 am

I work with the investment teams of all of the AFPs. They're all more or less the same. What's the most important, as mentioned, is the fondo you choose, which is dependent upon your risk profile. If you don't mind a lot of risk and volatility, choose fund 3.

You can change AFPs as many times as you want with no fees or penalties. So if for whatever reason you're not happy with your chosen AFP, ring up another one and some representative will come to your office to do all of the paperwork for you in 10 minutes....very easy! They're quite competitive in keeping clients so depending on how much money you've got in your pension, you may be able to even negotiate a better commission fee. :)
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Re: Which AFP?

Postby Donny Spoel » Wed Mar 30, 2011 10:50 am

Thanks for the answers. I couldn't make a good comparison, but I asked around and everybody tells me its more or less the same everywhere. The accountant of the company told me ProFuturo was okay, so I filled in the paperwork with them. Indeed, they come to the office and 10 minutes later its done.

GrDonny
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sunflower
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Re: Which AFP?

Postby sunflower » Wed Mar 30, 2011 11:01 am

Never bothered about the best company for the AFP as it was done by my husband's employer. But what I really wonder is if the commission fees are so high with other companies as well. We have to pay around 19.5% of the monthly deposit in commission plus some sort of insurance. Is this normal?
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Re: Which AFP?

Postby seb2010 » Wed Mar 30, 2011 11:22 am

sunflower wrote:We have to pay around 19.5% of the monthly deposit in commission plus some sort of insurance. Is this normal?


Yes, although 19.5% is really high. 10% of your salary goes to your pension plus 2% of a commission fee (depending upon which AFP you have, this varies slightly). Plus about a 1% fee on your salary for the AFP insurance. Our lawyer is telling me now that the insurance covers cases of becoming handicapped and can't work. In total, you should not be spending more than 12.5%-13.5% of your salary on your pension.

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