Imagine an investment that gives you an immediate 15% return, with no risk, no hidden fees, and backed by the government.
It exists. It’s called APV Regime A (APV-A), and it’s one of the most powerful — yet underused — tools to boost your future pension in Chile.
🧠 What is APV-A?
Voluntary Pension Savings (APV) under Regime A is designed for people who don’t pay high income taxes (less than 15%). In this regime, the government adds a 15% bonus to what you save during the year, up to a limit of 6 UTM, which currently equals CLP $417,252.
📌 How much do you need to save to get the maximum benefit?
To receive the full government bonus, you need to save CLP $2,781,680 in one year.
That’s about CLP $231,806 per month.
🚀 Why is this benefit so powerful?
Because it’s like getting a guaranteed 15% return, regardless of market performance.
And the best part: you don’t pay taxes on that bonus, nor on the earnings, as long as you don’t withdraw the funds before retirement.
📊 Comparison with a term deposit
Let’s see how it compares to a traditional investment:
Investment Type | Annual Return | Amount Needed to Earn CLP $417,252 |
|---|---|---|
APV-A | 15% (government bonus) | CLP $2,781,680 |
Term Deposit | 4% (average annual) | CLP $10,431,300 |
😱 Yes, you read that right! To earn the same CLP $417,252 with a term deposit, you’d need to save almost 4 times more.
Or, if you only have CLP $2,781,680, you’d need to keep it for over 3 years at that rate to achieve the same result.
🛑 Are there conditions?
Yes, and they matter:
- You must have at least one mandatory AFP contribution during the year.
- If you withdraw the money before retirement, you lose the benefit and must return the 15% to the government.
- The bonus is calculated once a year, so make sure to make your contributions before December 31.
🎯 Who is it ideal for?
- People with medium or low incomes who aren’t in high tax brackets.
- Those who want to maximize their retirement savings without taking financial risks.
- Independent or employed workers looking to complement their pension.
🧩 How to start?
You can set up APV-A through your AFP, banks, insurance companies, or platforms like Fintual, LarrainVial, among others.
Just make sure to choose Regime A when signing up.
💪 Conclusion
APV-A is a hidden gem in Chile’s pension system.
If you’re thinking about your future, this benefit is not just smart — it’s strategic.
***Remember that since the benefit cap is set in UTM (6 UTM), it varies according to inflation, and almost always the amount you receive is higher each year because the value of the UTM almost always increases in the same way.
This also means you need to save a larger amount each year to receive the full benefit, so make sure each year, before the deadline, whether you still need to contribute any amount.***