Choosing an AFP

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seawolf180
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Choosing an AFP

Post by seawolf180 » Thu Jan 30, 2014 1:07 pm

I recieved an email from SII stating I will be required to pay into a pension fund from now on.
My numbers will be pretty low so, as are my expectations. So I was considering one with low charges as being a good choice. AFP Modelo was recommended in that regard, but boy did I see a lot of complaints for them on Reclamos.cl.
Anybody recommend a reasonably priced, and reliable AFP?
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Southerner
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Re: Choosing an AFP

Post by Southerner » Thu Jan 30, 2014 4:49 pm

seawolf180 wrote:I recieved an email from SII stating I will be required to pay into a pension fund from now on.
My numbers will be pretty low so, as are my expectations. So I was considering one with low charges as being a good choice. AFP Modelo was recommended in that regard, but boy did I see a lot of complaints for them on Reclamos.cl.
Anybody recommend a reasonably priced, and reliable AFP?
I know that a lot my employees use AFP Habitat just for that reason BUT it seems that I read somewhere that they were recently purchased by another group, so that might change.
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sparxela
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Re: Choosing an AFP

Post by sparxela » Tue Feb 04, 2014 3:11 pm

Found out today, after inquiring in person at SII, Modelo, and Habitat in Providencia, and topic7337.html and topic10400-12.html on this forum (sorry - can't seem to [url] here) mention it also - - Modelo is apparently the *only* option for first-time AFP contributors, and you must cotizar with them for two years before switching, and you absolutely cannot (as in the case of leaving the country) get your money out until retirement.

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zer0nz
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Re: Choosing an AFP

Post by zer0nz » Tue Feb 04, 2014 3:17 pm

sparxela wrote:Found out today, after inquiring in person at SII, Modelo, and Habitat in Providencia, and topic7337.html and topic10400-12.html on this forum (sorry - can't seem to [url] here) mention it also - - Modelo is apparently the *only* option for first-time AFP contributors, and you must cotizar with them for two years before switching, and you absolutely cannot (as in the case of leaving the country) get your money out until retirement.
That statement is wrong,

here is the instructions, and apply for all AFP by law!

http://interno.afphabitat.cl/Afiliados/ ... 105244.asp

frozen-north
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Re: Choosing an AFP

Post by frozen-north » Thu Jul 24, 2014 12:50 pm


Las AFP, una previsión sin futuro

Hay consenso en que el sistema de AFP adolece de serias deficiencias. Según datos de la propia industria desde la década de los 80 a la fecha se han acumulado fondos que ascienden a los 160 mil millones de dólares, resultado del ahorro de todos los trabajadores chilenos. Esta cifra contrasta con lo que reciben los jubilados bajo este sistema, cuyas pensiones en promedio no sobrepasan los 185 mil pesos. Se estima que sobre el 60 por ciento de quienes se acojan a jubilación con las AFP recibirán pensiones que no superarán los 150 mil pesos.

El sistema fue implementado en Chile durante la dictadura y prometió solucionar el problema de las bajas jubilaciones en el país, en su momento se dijo que éstas equivaldrían al 75 por ciento del salario obtenido, pero la realidad está demostrando que dicha promesa era falsa. Especialistas debaten distintas alternativas y el Gobierno anunció la creación de una AFP estatal, lo que es visto por muchos como una medida "parche". El problema se complejiza aún más cuando vemos que el dinero ahorrado por los trabajadores en los Fondos de Pensiones opera en el mercado, invertido en las principales empresas que mueven la economía del país lo que dificulta cualquier reforma ya que hacerlo, implica ir contra un aspecto fundamental del modelo de desarrollo implementado en Chile.



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Re: Choosing an AFP

Post by Donnybrook » Thu Jul 24, 2014 1:09 pm

What you get out at the end, at least in our case (after 25 years on a decent salary), is less than a third of your last salary. I can well imagine that the average is 185 thousand pesos. I doubt anyone gets enough to live on without some serious lifestyle changes.

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Re: Choosing an AFP

Post by Britkid » Thu Jul 24, 2014 2:59 pm

Do you mean that you lose the absolute right to actually receive the pension if you no longer live in Chile?
Or do you mean it's just difficult to get it paid into a foreign bank account, or merge it with another pension in another country, so just difficult in practice to get it?

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Re: Choosing an AFP

Post by eeuunikkeiexpat » Thu Jul 24, 2014 3:45 pm

Gloria wrote:I have for you a nice piece of land in Bolivia with a spectacular ocean view.
You do? Please post ads in the Classifieds section :P
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Re: Choosing an AFP

Post by john » Thu Jul 24, 2014 4:20 pm

A major contributing factor to inadequate pension returns is that the AFP's charge excessive management fees, plus the industry consolidation of AFP's (from 32 to 6) means there is much less competition.

Accordingly, the probability of legislative approval for a public pension system seems to have improved.

Chile's Bachelet Pushes Pension Reform, Threatening Private Funds

http://www.institutionalinvestors.com/A ... 9Fav1bIrw4

http://www.scribd.com/doc/231798325/Chi ... s-21040627
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Space Cat
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Re: Choosing an AFP

Post by Space Cat » Tue Mar 27, 2018 10:11 pm

So, which one is the lesser evil 4 years later? I'm finally starting to pay taxes next month and need to enroll into AFP.

PlanVital was the cheapest one but it collapsed recently. Habitat was the best in 2017, should I go for it then?

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Space Cat
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Re: Choosing an AFP

Post by Space Cat » Wed Mar 28, 2018 1:25 pm

Gloria wrote:
Wed Mar 28, 2018 9:16 am
Go with Habitat or Modelo. Keep in mind that there´s a possibility of all AFP´s getting either "revisited" or wiped out completely in a near future.
Thanks, I guess there's not much to do to avoid this kind of future. I'm not going to use something like APV but 10% to AFP is required for honorarios starting this year.

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Re: Choosing an AFP

Post by admin » Wed Mar 28, 2018 4:05 pm

Here just came across the ranking of commision for the afps

https://www.df.cl/noticias/mercados/fin ... 72704.html

Invest in the fundo A, or "high-risk" fund, because they all have way too many constrains on them all ready.

Everyone keeps bitching about the returns of the afps, but a monkey with a dart board full of ticker symbols could get better returns. A lot of it has to do with the goverment restrictions, that essentially force the afps to do everything you should never do with a long-term retirment fund.
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