Understanding Partial Withdrawals from Your Afore Account
Partial withdrawals from your Afore account allow you to access a portion of the funds in your individual account for two reasons: unemployment or marriage. While this can help you navigate through financial difficulties, it’s crucial to understand the implications for your long-term retirement savings.
Pros of Partial Withdrawals
- Easy Access: You can apply for the withdrawal online or directly through your Afore. Ensure your electronic folder is up-to-date.
- Not a Loan: You are not obligated to repay the amount, and it does not accrue interest.
Cons of Partial Withdrawals
- Reduced Retirement Savings: The amount you withdraw directly reduces your account balance and cotization weeks.
- Reduced Cotization Weeks: This may impact your entitlement to a pension if you don’t recover the lost weeks.
- Usage Limit: You can only make this withdrawal once every five years.
- Limited Amounts: The withdrawal amount depends on your cotization years and average base salary for at least the last year.
How Much Can You Withdraw?
Unemployment withdrawal is a right for all workers with an Afore account, provided they have at least 46 days of unemployment and the amount accessible depends on your average base salary cotization and cotization weeks over recent years.
There are two withdrawal modalities post the reform approved on June 23, 2021:
- If an individual account has been open for at least 3 years and has a minimum of 12 bimesters cotized with the IMSS, it can withdraw an amount equivalent to 30 days of average base salary cotization over the last 52 weeks.
- If an individual account has been open for 5 years or more, it can withdraw the lesser of either 90 days of base salary cotization over the last 250 weeks or 11.5% of all accumulated funds in the account.
Partial Withdrawal for Marriage
Pros:
- Support for Initial Marriage Expenses: You can use it to help cover wedding costs or start your life as a married couple.
- Less Impactful than Unemployment Withdrawal: It does not reduce cotization weeks; it only slightly decreases your subaccount balance.
- Simple Process: You can apply through your Afore if you meet the requirements: marriage certificate, official identification, and a bank statement. Ensure your electronic and biometric folder is updated.
Cons:
- Very Low Amount: You can only withdraw the equivalent of 30 minimum wage days in Mexico City, approximately $8,000 pesos.
- One-time Use: It’s a unique benefit, usable only once.
- Strict Requirements: You must have at least 150 cotization weeks and be registered as an insured person with the IMSS at the time of marriage.
Can You Replenish Withdrawn Amounts?
Yes. For unemployment withdrawal, you can voluntarily reintegrate the withdrawn amount to regain cotization weeks without interest payments, even in multiple installments. For marriage withdrawal, there’s no need to replenish as it doesn’t affect your cotization weeks; however, the withdrawn amount is not automatically restored.
