How to Withdraw Money from Your Afore Account

Get ready to tap into your Afore funds! Whether you're facing unemployment, tying the knot, or need some voluntary savings, we've got you covered. Find out how to withdraw money from your Afore account and make your financial dreams a reality.

How to Withdraw Money from Your Afore Account
Tap into your Afore funds and handle unemployment with ease. Learn how to make a partial withdrawal for unemployment assistance. Image by 1820796 from Pixabay

Retirement might be far off, but that doesn't mean you can't get your hands on some of the cash from your Individual Account in the Afore. Yes, you heard it right! You can make partial withdrawals even before retirement. So, whether you need some extra dough for a wedding or find yourself in a tough spot due to unemployment, here's how you can navigate the process.

First things first, let's break down the three situations in which you can withdraw money from your Afore, as outlined by the National Commission of the Retirement Savings System (Consar):

Unemployment Assistance

Picture this: you're caught in the web of unemployment. Don't worry, help is at hand. However, keep in mind that you can only apply for unemployment assistance once every five years. The amount you can withdraw depends on your last base salary of contribution to the IMSS or ISSSTE (Instituto Mexicano del Seguro Social or Instituto de Seguridad y Servicios Sociales de los Trabajadores del Estado).

  • IMSS: You have two retirement modalities to choose from. a) Modality A: If you've had an Afore account for at least three years with two years of contributions, you can withdraw the lesser of 30 days of your last contribution base salary or 10 UMAs (Unidad de Medida y Actualización), equivalent to $1,037.4. b) Modality B: If you've been a member for five or more years, you can withdraw the lesser of 11.5% of the balance in your Individual Account or 90 days of your base contribution salary over the last 250 weeks. In both cases, you must provide evidence of being unemployed for at least 46 days. To initiate the process, generate a pre-application for Partial Unemployment Withdrawal through the portal, accessible via your Afore. Keep your electronic file handy. Once your Afore manages the certification of your right before the IMSS, if successful, they'll deliver the amount due to you within a maximum of five working days through a check, payment order, or deposit.
  • ISSSTE: You can make this withdrawal if you haven't done so in the last five years. The amount you can withdraw is the lesser of 75 days of your base salary for the last five years or 10% of the balance in your "Retirement, Severance at Advanced Age, and Old Age" Subaccount. To proceed, apply for Partial Unemployment Withdrawal along with the unemployment certificate issued by the ISSSTE.

Keep in mind that the number of contribution weeks will be reduced proportionally to the money you withdraw, which might impact your future pension. Only use this option in a genuine emergency. When you return to work, you can reimburse the withdrawn resources and the corresponding contribution weeks.

Withdrawal for Marriage Expenses

Love is in the air, and wedding bells are ringing. Congratulations! If you need financial support for your big day, you can make a one-time withdrawal. Here's what you need to qualify:

  • At the time of your marriage, you must have made at least 150 weeks of contributions to the IMSS.
  • Ensure your electronic file is up to date.
  • If you are no longer part of the mandatory regime, don't worry; you can still proceed with the withdrawal as long as the marriage took place within 90 working days from the date you left the mandatory regime.
  • Fill out a pre-application form to generate a code, which you must take to your Afore.
  • Present a certified copy of your marriage certificate during the process.

For a marriage withdrawal, you will receive an amount equivalent to 30 UMAs, roughly around $3,112.2. Unlike unemployment assistance, this sum comes from the social quota contributed by the Federal Government to your Individual Account. Therefore, no contribution weeks will be deducted, but your savings amount will be reduced.

Withdrawal of Voluntary Contributions

Sometimes, you just need to access the money you've saved up voluntarily. Whether it's for a short-term goal or a medium-term plan, the rules are as follows:

  • For short-term savings, you can make withdrawals at any time.
  • For medium-term savings, you'll need to wait for a minimum of five years. If you withdraw before that, the corresponding tax will be withheld.
  • Make sure your electronic file is up to date.

Now, gather the required documents:

  • Official identification.
  • Afore account statement.
  • Bank statement in your name with the Standardized Bank Identification Number (CLABE).

Head to any branch of your Afore and ask for the "Application for the Disposition of Resources" form. Fill it out and sign it. Within five working days, the money will be delivered to you.

Withdrawal via the AforeMóvil app: Here's a treat for tech-savvy individuals. If you have the AforeMóvil app and have made voluntary contributions using this handy tool, you can access your resources anytime you wish, without the need to visit your Afore physically.

Now that you're equipped with the knowledge to access your Afore funds, go forth and use them wisely. Remember, financial decisions should be made with careful consideration, especially when it comes to your retirement savings.