💸 APV-A: How to get an extra 15% return on your retirement savings 🇨🇱✨

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 ($417.252).

📌 How much do you need to save to get the maximum benefit?

To receive the full government bonus, you need to save $2.781.680 CLP in one year.

That’s about $231.807 CLP per month.

🧮 How is the maximum necessary annual savings calculated to receive the full bonus?

Maximum savings for full bonus = 6 UTM ($417.252 CLP) / 0.15

Maximum savings for full bonus = $2.781.680 CLP

👀 Since the UTM value changes every year, this maximum amount must be recalculated annually.

🧮 How is the bonus to be received calculated?

APV-A Bonus = 0.15 × Annual Savings

APV-A Bonus = 0.15 × $2.781.680 CLP

APV-A Bonus = $417.252 CLP

👀 Since the UTM value changes every year, the bonus amount must be recalculated each year.

🚀 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:

😱 Yes, you read that right! To earn the same $417.252 CLP with a term deposit, you’d need to save almost 4 times more.

Or, if you only have $2.781.680 CLP , you’d need to keep it for over 3 years at that rate to achieve the same result.

📅 When will I receive the government benefit in my APV-A account?

The 15% APV-A bonus is not paid immediately after your contribution.

It is usually paid between August and December of the year following your deposits. This means that if you didn’t contribute last year, you won’t receive anything during those months this year.

✅ Practical examples:

1. Contributing every month until reaching the benefit cap

• Maximum amount to receive the benefit: $2.781.680 CLP
• If you divide this amount over 12 months: $2.781.680 CLP ÷ 12 = $231.807 CLP per month.
• Result:
  If you contribute $231.807 CLP each month throughout the year, next year (between August and December) you will receive the maximum bonus of $417.252 CLP .

2. Contributing the full amount in a single payment before December 31

• If you prefer to do it in one payment, you can contribute $2.781.680 CLP anytime during the year, as long as it’s before December 31.
• Result:
  Next year, between August and December, you will receive the maximum bonus of $417.252 CLP .

📌 Important:

• The benefit is calculated based on the contributions made the previous year.
• If you didn’t make any contributions last year, you won’t receive anything this year.
• The more you contribute (up to the cap), the higher your bonus will be.

🛑 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 based on the UTM (Monthly Tax Unit), it changes according to inflation, and the amount you receive is almost always higher each year because the UTM value increases along with inflation.

This also means that you need to save a higher amount each year to receive the full benefit, so make sure every year—before it ends—whether you still need to contribute any remaining amount.***