Imagine this situation: you are under a lot of economic pressure and the money you have in your savings fund for retirement comes to your mind. You think about withdrawing it in advance and use it to get out of economic bumps, but will it be prudent?

Ideally, the only withdrawal you can make from your savings account for retirement, that you have contracted with a Retirement Fund Manager (Afore), is what you do in retirement or the time you retire.

However, thanks to various amendments to the Law and provisions made by the National Commission of the Savings System for Retirement (Consar), it is now possible to make early withdrawals.

In this article, we tell you everything you need to know to be able to withdraw money from your Afore even before the long-awaited moment when you say goodbye to your co-workers.

What types of withdrawals exist?

In the savings world that Afores entail, there are different modalities to make withdrawals from our personal accounts of the savings system.

Things change depending on the social security service that you pay for your work: be it the IMSS or the ISSSTE, both institutes offer different ways to make your money available.

Total withdrawals

It is about the withdrawals that you make of the totality of your savings at the time of your withdrawal from work activities.

Whether you have contributed to the IMSS for the 1973 or 1997 regimes, or that you have contributed to the ISSSTE and receive your pension under the Tenth Transitory or Individual Accounts regime, in both cases you put at your disposal all of your savings.

When you make this type of retirement at the time of retirement, it means that all this time you have resisted the temptation to dispose of your savings money ahead of time, but what can you do if you need money and you need to retire as at 30 years old and not at 60?

Withdrawal by beneficiaries

If you die in advance of your retirement or even after retirement, your beneficiaries may dispose of the funds in your Afore account.

For the IMSS there are two types of beneficiaries: the legal ones and the substitutes. The first can be your spouse, your children (over 16 or under 25 as long as they are studying), your parents if they lived in your house, the concubine or the concubine if they depended economically on you.

The substitute beneficiaries are people that you can designate if you were single and your parents did not depend economically on your income. Although, these people can not have your pension, they can do it from the funds in your Afore account.

The Federal Board of Conciliation and Arbitration will be the one who issues the resolution to designate them as beneficiaries or not. In the case of ISSSTE, this method of withdrawing funds from your Afore account works in exactly the same way.

Partial withdrawals

Depending on different assumptions you can make a partial withdrawal of funds from your savings account. If you contribute to the ISSSTE you can make a partial retirement for unemployment, if you are affiliated with the IMSS you can also do it for unemployment, but also by marriage if you have found the love of your life and have decided to formalize it with a wedding.

Partial retirement for unemployment

You must bear in mind that the partial retirement for unemployment is not in itself the real purpose of your Afore. However, it is a benefit with which you have if you ever lose your job at some time and due to life circumstances.

If you quote for the IMSS this is what you have to know:

  • You must have 46 calendar days unemployed.
  • Have at least 3 years of being registered in an Afore.
  • Have 2 or more years listed on the IMSS.
  • Not having used this withdrawal in the last five years.
  • Have a Worker Identification File that you can request with your Afore.

In addition, you must present the following documents: 1

  • Your CURP.
  • A valid official identification.
  • A document that contains your Social Security Number (NSS).
  • And a bank statement in your name that contains your Standard Bank Number (CLABE) number.
To make the withdrawal

You must go with your Afore who will manage with the IMSS your Certificate of Right to Partial Unemployment Retirement, fill out the corresponding application and a format that informs the consequences of this type of withdrawal.

Once the procedure is processed, you will be able to use your resources in the following ways:

Modality A: If your Afore account has at least 3 years of being open and you have a minimum of two years of contribution to the IMSS, you receive 30 days of your Base Salary with a limit of 10 times the minimum monthly salary in force. Mexico City.

Modality B: If your Afore account has five years or more of opening you will receive less than 90 days of your Base Salary in the last 250 quoted weeks or 11.5% of the resources that you have accumulated in your Retirement sub-account, Unemployment in old age and Old age.

In turn, the Afore will pay you this benefit in 6 equal monthly installments or in a first payment equivalent to 30 days of your last Base Salary of Contribution, and the rest in a single exhibition.

If you contribute to ISSSTE this is what you have to know:

Depending on the scheme you are quoting, in the ISSSTE you can have your Afore in the modality of unemployment retirement.

If you quote in the individual account regime you can have the amount that is less than 75 days of your Basic Salary of the last five years or 10% of the salary that is registered in your Retirement Sub-account, Unemployment in advanced age and old age.

If you quote the Tenth Transitory regime, you can make a provision of 10% of the salary that is reflected in your Retirement Sub-account.

What do you need?

  • Have a minimum of 46 days unemployed and check it by means of a certificate of unemployment granted by the ISSSTE.
  • Not having exercised the early retirement during the previous five years.
  • Have the Worker Identification File updated, which can give you your Afore.

In addition, you must present:

  • A valid official identification.
  • A statement of your Afore account that you can request with who manages your fund.
  • A bank account statement, in your name and with CLABE number.

Regardless of the scheme, you will receive the benefits of this benefit in the bank account that you provide.

Partial retirement by marriage

If you contribute to the IMSS, you have found the love of your life and have decided to get married then you can request a partial retirement by marriage. It is a benefit whose amount is equivalent to 30 days of current salary in Mexico City on the date of your marriage.

To request it, you must:

  • Have quoted a minimum of 150 weeks from July 1, 1997.
  • Not having exercised this benefit previously.
  • To have a validity of rights as insured.
  • Have your updated Worker Identification File, same that you can request with your Afore.

In addition, you must present:

  • A valid official identification.
  • The marriage certificate.
  • Your CURP.
  • A statement of your Afore with no more than six months old.
  • A bank account statement in your name and with your CLABE.
  • The original and two copies of your Request for Disposition of Resources that your Afore can give you.

To apply, you can go to your IMSS clinic and ask for the Help for Marriage Expenses, they will give you a form that you must complete and sign.

Once the insurance approves your application you can go to your Afore to request the Request for Disposition of Resources form and later, in five working days, you will receive the benefit in your bank account.

Is it convenient to make early partial withdrawals?

May make early partial withdrawals is a great alternative to get out of bad steps if we were out of work or if we got married and the wedding was very expensive. However, we must take into account the consequences of a decision like this.

For example, the partial retirement for unemployment in the IMSS causes that deduced quoted weeks which directly affects your pension.   In the ISSSTE, the same modality has as a consequence that you deduct years of service.

Although in both cases you can make withdrawals to your Afore account in the form of voluntary contributions, it is worth knowing if we will really do it once we get out of the bad step, or if we will let things go and be surprised when we see the amount of our pension.

What alternatives do we have?

The great advantage of the Afores in our country is that we can make voluntary contributions with what there is also the withdrawal of voluntary savings.

As you already know, your Afore account is divided into Sub-accounts, so you can have a sub-account for the withdrawal or a voluntary contribution.

All the money you put together in this segment can be withdrawn in full or in part at the time you decide because this money is yours and also has returned as part of a Siefore (Investment Companies Specialized in Savings Funds for the Retirement).

On the other hand, in situations where you consider that you need to get out of the economic slump, you can request a loan. Fortunately, you are not unemployed, so if you want to finance projects such as remodeling your home or even covering the expenses of a great wedding, you can rely on this type of financing.

In the economy and personal and family finances, everything is about knowing how to make a great management of your expenses so as to be able to carry out your financial goals. First of all, always make sure you save and pay your debts on time.