Regardless of the reason, many citizens often need to know the Requirements to Withdraw AFP Funds. The situations that can lead to this outcome are different, but when the time comes to make the request, it is best to have all the tools at our disposal.
In order to help Chileans and foreigners with this process, we have decided to bring this instruction on the Requirements to Withdraw AFP Funds.
How to Withdraw AFP Funds?
In order to Withdraw the AFP Funds, certain specific requirements must be met. First of all, you should know that the management of Requirements to Withdraw AFP Funds It is done online, or by presenting yourself at an office with the general documentation.
Through this service, affiliates who may have been unemployed will be able to make use of their economic or health, social, or pension benefits.
Thus, it must begin by entering the Online portal of the Unemployment Fund Administrator. Once you log in, you will need to enter your password and Unique Tax Registration number.
After giving your data, you should look in the frequently asked questions section, where the option about «How to get Unemployment Insurance Online». This will be the category required to process the AFP Withdrawal of Funds.
When you continue you should look for the option «Insurance Collection». There you will have to attach a photo or a file of your scanned identity document, as well as the settlement or termination of your employment relationship.
If you do not have the settlement, it will be necessary for you to submit other documentation regarding the event.
Using this information, the Unemployment Fund Manager may check your background before delivering the response. Finally, you will be sent an email indicating whether the AFP Withdrawal of Funds was approved or rejected.
If you request is denied, the entity must be in charge of giving the reasons why said resolution was issued. Likewise, throughout the process you should be given the option to review the status of your application along with the corresponding payment dates.
Documents Needed to Withdraw AFP Funds
Documentation that works like Requirements to Withdraw AFP Funds are the ones indicated below:
- The identity document of the holder of the contributions.
- The documentation that shows the time that was contributed according to the amount to be withdrawn.
- The contract for the termination of the employment relationship with the employer.
How much money can be withdrawn?
Since 2016, members of a Pension Fund Manager can withdraw an amount of up to 95.5% of the pension funds available within your Individual Capitalization Account. This will apply to those workers who have contributed a minimum of 20 years of minimum contributions at each opportunity.
The remaining 4.5% is an amount that is kept withheld in order to pay EsSalud in order to maintain access and coverage of health services for the member.
Even so, if the worker has a fund that does not exceed 5,610 pesos, he has the possibility of withdrawing the money completely. It should be taken into account that, if you want to access another type of bonus for the withdrawal of funds, which changes how much money can be withdrawn.
If funds are to be withdrawn for use of a mortgage loan, it is allowed to use only one maximum of 25% of the accumulated fund for the down payment. This will only apply when it comes to buying a home at any time during membership.
In the case of early retirement, the 95.5% mentioned above will also be allowed to withdraw. To access this option, you must not have met the mandatory contributions during the previous twelve months and be between 55 and 64 years old for men or 50 and 64 years old for women.
For citizens declared with diagnoses of cancer or terminal illness, they may only request a refund of 50% of their contributions. This includes its profitability, taking into account that there are no beneficiaries of the survivor’s pension.
If you want to know more about how much money you can withdraw from your pension fund, we recommend you read this article.
Process for foreigners
The process for foreigners can be somewhat more complex than for Chilean citizens. In your case, Requirements to Withdraw AFP Funds are described in Law No. 18,156, mentioning the following documentation:
- Original and copy of the citizen’s identity document.
- The certificate that proves that you are affiliated with a Pension Fund Manager, which quotes all your pension savings.
- A copy of your legalized professional or technical title. For its presentation, any of the documents must be legalized and translated through the Ministry of Foreign Affairs.
- The identity document of the non-Chilean citizen, either his identity card or passport.
- A power of attorney for a third party to carry out the particular procedure on your behalf, which must have been authorized by a notary public. The power of attorney will not be valid if it was issued more than six months before your application was submitted.
- The Social Security Funds Refund Request Form. This includes:
- The personal information of the applicant.
- Accreditation of the professional or technical title of the citizen.
- That you are affiliated with a social security or pension fund that includes sickness, disability, old age and death benefits.
- Accreditation of the conditions of the employment contracts.
- The employment contracts with the companies in which you have worked. These must meet the conditions described below:
- Have been legalized by a notary.
- Be signed by both the worker and the employer.
- Contain evidence that the non-Chilean citizen has listed in the Pension Fund Administrator. Said specification must be contained in a clause or annex that allows the funds to be withdrawn.
- That the aforementioned annex or clause is also legalized by a notary.
Once all of these come together Requirements to Withdraw AFP Funds, the foreigner must begin the process. To do this, you will have to go to the AFP office closest to your home with all the documentation explained.
It is recommended that copies of all Requirements to Withdraw AFP Funds. This is because the office usually takes the documents and does not return them during the process, so it is convenient that you keep the originals. Likewise, we advise that all your copies be authorized in front of a notary.
- Citizens who have worked in public entities cannot do this procedure. This occurs because public officials are not assigned by a contract, but the hiring is made effective through an appointment resolution.
- The technical or professional title, as well as the affiliation in social security outside of Chile, must be prior to hiring within the country.
- In case of having dual nationality, it will not be necessary to carry out the process in this way, since you are considered a Chilean citizen.
- In the same way, this procedure will not be necessary if you are of Peruvian nationality. Due to the conventions of the pension system, Peruvian nationals go through the same process as Chileans.
- If you have any questions about this procedure, we leave you this link for you to consult some more specific advice.
Benefits of the AFP
The benefits of the Pension Fund Manager It starts with your own concept. Being an entity that allows workers to save savings during their working years, it allows them to have funds with which to support themselves when they can no longer continue exercising.
The main benefits of AFP are made up of:
- The old-age pension.
- The disability pension.
- An anticipated pension in cases in which the retirement age is not reached, but particular conditions are accredited.
- The survivor pension, for the family of an affiliate when he or she dies.
- An inheritance for the member’s family when he or she does not have beneficiaries who make use of the survivor’s pension.
- The mortuary fee, which is equivalent to 15 Fiscal Units, which seek to cover the funeral expenses of a deceased member.
- The freely available surplus, which determines the amount needed to pay your pension.
To answer other frequently asked questions about benefits of AFP you may come in here and consult the information presented.
What is a Pension Fund Manager?
A Pension Fund Administrator, Usually referred to as AFPs, they are financial entities whose exclusive purpose is the management of Chilean pension savings. Its activities include the administration and payment of social security benefits and pensions for citizens.
The AFP is in charge of saving these funds until the moment it is necessary for the pension to be delivered, either because of retirement from a job, due to old age, in the event of disability or death.
The Pension Fund Administrators have a universal and uniform system. Universal because it affiliates workers of all kinds, regardless of their condition. Uniform because it maintains order and coherence between the requirements to affiliate and the Requirements to Withdraw AFP Funds.
If you want to know more about the AFP system in Chile, it is recommended that you go to this link and discover much more about this beneficial savings fund.
Withdrawing funds from a Pension Fund Administrator is a right of all affiliates, as long as they meet certain conditions.
Since you got to this point, we hope you get to gather all the Requirements to Withdraw AFP Funds in Chile.
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