3 options for you to retire with 75% of your salary


By CAPosts 22 November, 2020 - 08:10am 39 views

As we know, the Afore is a financial entity created to safely manage and invest the retirement savings of public, private or independent sector workers.

But the pandemic came to break the pace of savings since, according to the Organization for Economic Cooperation and Development (OECD), the economic impact of the Coronavirus will leave more than 3.4 million unemployed in Mexico at the end of 2020. Faced with this environment, the National Commission of the Savings System (Consar), pointed out that each worker who has made a withdrawal from his Afore due to unemployment will have to work one more year to be able to recover the contributed weeks he lost.

Between 2019 and July 2020 a total of 2.5 million workers withdrew the equivalent of 150 million contribution weeks, an average of 60 contribution weeks per worker.

“There are several options that can be part of our plan for the future, since thanks to technology, we can access Fintech investment options. The value of money changes over time, so maintaining an investment that we increase month by month will benefit us because our money will be working for us, generating more money ”, comments Gerardo Obregón, founder and CEO of Prestadero.com

When we are young, we rarely think or worry about these issues, however, have you started to investigate what your Afore returns will be and what pension you will receive with the latest reforms? Not much right? And realistically, it is most likely not enough.

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It is suggested to start with the basics: where is my Afore? If you do not know which administrator manages your resources, first of all you must enter this link.

So how do we prepare for the arrival of our own old age? Saving is the answer, Obregón recommends:

1. Afore

You can make voluntary contributions to your Afore, so that they increase the amount of your savings and in this way, you can achieve a desirable pension level, when that moment arrives.

2 Inversión

Another way to obtain income is to invest your money, but the Stock Market is no longer the only alternative that exists, nor are investment bank accounts. There are other forms of investment such as Crowdfunding companies in Loans, Real Estate and Shares.

3. Save little by little

If the two options are not for you, then you can choose to save little by little, but constantly , instead of overspending. It is suggested that you do it biweekly or monthly, establish how much you are going to allocate to save and then, of what is left over from the budget, always without touching that money that is intended to be in our savings for the future. In addition, it is useful if you allocate an exclusive bank account for this that you cannot withdraw to spend all the time.

"It is not a matter of choosing one or the other, you can even combine them, evaluating the different options that exist in the market and starting to Invest in small amounts, taking care of your diversification and advising you on investment products. Although your retirement is still distant, it is important that you evaluate and plan with what amount you would like to retire, considering that an ideal would be with 75% of your salary current ”, concludes Obregón.