Afore: 5 reasons why you should start saving today if you want a decent retirement

Being young, we see the problem of retirement and retirement we come to think that there is no need to save because there is a long way to go, so we do not allocate a percentage of our income to AforeHowever, economic experts warn that the ideal age to start planning and saving for the future is 20 years old. If you haven’t done so yet, you can read how to retire at 60 if you’re already in your 30s and don’t have funds for your retirement.

Why this age? Well, because most Mexicans start their working lives in their 20s and that’s the perfect time to start saving, because as the years go by and job opportunities improve, the amount for retirement can be increased; about experts in Before They said many workers don’t know exactly what this tool is, how it works, let alone why it’s important to them.

One thing you need to take into account is that the retirement money in your Afore belongs to you, and even if it is designated for this purpose, you can use it when you need it, especially in case unemployment, and you can also inherit to your loved ones in the event of your death, but what’s best for you is to invest it with everything and come back.

Alfonso Aguirre, author of the book “I have something to tell you” He shared his method to be able to save for his old age, he is not yet in his thirties but he already has a plan to achieve this and the secret is to organize his income in such a way that he can allocate money money and voluntarily contribute to Afore. The tiktoker confessed that he was worried because he was not saving for his future, so he opened three accounts from which he will not be able to make withdrawals until he reaches a certain age.

Listen to the Money and Personal Finance podcast with advice from Alfonso Aguirre

5 reasons why you should start saving today if you’re a millennial

To avoid the difficult scenario of retirement savings, we tell you the 5 reasons why you should start now:

• 1. The money in your savings belongs to you, so you must consider that even if it is not planned to be used now in the future, it will be very useful, the Afore form of your assets is as valuable as having a house or a car.
• of them. Reinvest the interest generatedalthough it seems tempting to withdraw the returns that an investment generates monthly, it is advisable to leave them there and reinvest them, as this is called compound interest and implies that your profits multiply over the years and will be all the more important as you will spend years saving
• 3. Money you save voluntarily is tax deductible before the Tax Administration Service (SAT) so that when you submit your annual return in April of each year, the SAT can return some of what you have allocated to that savings for the future.
• Four. You can make partial withdrawals of the amount you have saved, this is only recommended in a real emergency, such as being unemployed for more than three months. Withdrawing money from your Afore not only subtracts from the saved balance, but also from the quoted weeks, so it is recommended to carefully consider whether it is necessary to use these resources.
• 5. Your Afore allows you to save in the short term, yes, this is one of the advantages, because it also gives you the best returns, you can use this tool for specific projects like a trip, buying a house or whatever you want. You can also do it with an amount of 100 pesos.

Economist and influencer César Vargas shares investment advice on his Instagram account and recently posted a chart that went viral by posting a diagram on how much you should contribute to your Afore for the future and thus be able to take your retire at age 65 with a bank account that supports you.

Author: Diana Zaragoza
Source: El Heraldo De Mexico