Afore: 4 powerful reasons to increase your voluntary savings

Post author:California18
Post published:December 24, 2022
Post category:News
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Financial experts advise planning for retirement and preparing a saving to save time and obtain the best conditions to receive a pension and enjoy the fruit of years of work.

That is why it is important that with the employer contributions that your company or employer makes, a little store is built that manages a Retirement Fund Administrator (afore) of your choice that is responsible for investing your money so that it generates interest and grows, but there are also several good reasons to make additional payments, and with these 4 you may end up convincing yourself that it is worth saving in your Afore with voluntary contributions.

Four reasons to save on your Afore

It is not necessary to think about it many times, these four reasons are enough to make it reasonable enough to save in your retirement funds account and make your voluntary contributions: ensure a decent retirement, grow your capital with the returns, have your support financial if you fall into unemployment and even to have some tax benefits when paying taxes to the Tax Administration Service (SAT).

1. Your retirement that you deserve

Think about how you would like to spend your retirement, and if you think you deserve a break for your years of working life when you should not have financial worries, then you also deserve to start planning that

2. Make your savings grow

If you have unexpected earnings or receive some extra income that you would like to set aside as savings, making extraordinary contributions to your Afore is a good bet.

Since it offers returns for depositing your economic resources, the amount grows little by little to beat inflation and so that your money does not lose purchasing power.

3. Funds in case you lose your job

If you already have an emergency fund to support your personal finances in case you lose your employment relationship, remember that from your retirement savings account you can make partial withdrawals for unemployment, so having a little stash available will not hurt you , considering the rest of the advantages.

It may interest you: What is the Afore and what is it for?

4. Tax benefits in the SAT

Finally, there is the matter that voluntary contributions to your Afore account are tax deductible, therefore, if at the end of the fiscal year you obtain a positive balance with your Annual Tax Return, you can request the Refund of the Balance in Favor .