Seventh Withdrawal and the AFP Self-Loan: Which one pays more money?

The Seventh Withdrawal and the AFP Self-Loan are two initiatives that are in progress and that could bring good news to the Chilean pockets if they manage to be approved.

Both economic measures are proposals that must be evaluated, voted on and subsequently made official, so it is still a matter of speculation. Of course, if approved, there will be important benefits.

Which of the two is better? What money does one or the other give? We will tell you all about this below.

Seventh Withdrawal and the AFP Self-Loan: Which gives more money?

The answer is that The Seventh Withdrawal would pay more money to people who have savings in their accounts. All this, as long as the measure is approved.

Below we tell you what each one consists of:

Seventh Retreat

Measure driven by independent deputy Enrique Lee and? during june should be reviewed in parliament.

This project will allow 15% of members’ pension savings to be withdrawn. and has the particularity of obtaining up to 50% of funds exclusively for residential purposes, specifically for “the acquisition of the first home”.

AFP self-loan

It is a measure part of the Pension Reform imposed by the Government and is still in the review phase in Parliament.

If it is approved and operates as law in Chile, these would be its limitations:

• The amount should not exceed 5% of savings by the contributor
• The maximum limit will be 30 UF. This is equivalent to approximately $1,000,000.
• Must be requested by men under 60 years old.
• Women under 55 years of age they can opt for it.

Last April, More than 9,300,000 members are able to apply for the Self-Loan. From them, 1,500,000 could ask for Maximum amount of 30 UF.

On the other hand, close to 7,900,000 members They could request an amount less than 5% of the balance available in your pension funds.