Updates AFP - 4th round 10% retrieval (Status November 2021)

The congressional debate around the potential 4th 10% retrieval has been capturing the headlines recently. We would like to take this opportunity to bring you up to date with the latest developments as well reminding you of the important deadlines relating to the 2nd and 3rd 10% withdrawals.


The 4th round of 10% project is still under discussion, so it is subject to potential change. However, indications are that it will be very similar to the previous retrievals, in terms of the amount accessible for withdrawal.


On Tuesday, September 28, 2021 the Chamber of Deputies approved the constitutional reform project that would authorize a fourth withdrawal of 10% of pension savings. Subsequently, the project passed to the second constitutional process in the Senate, where it has to be reviewed in the constitutional commission and voted in the courtroom (it needs 25 votes to be approved).


On Tuesday, November 9, 2021 the Senate rejected the project and therefore it will be passed to a review in a mixed commission, conformed by senators and deputies.


Source: AFP Capital Play

Deadlines for existing 10% retrievals


  • 1st 10% withdrawal: Deadline has now passed.


  • 2nd 10% withdrawal:

 Retrieval requests must be submitted by 10th December 2021. This withdrawal is taxable if your income level is above $1.5 million pesos (30 UTA – unidades tributarias annuales). You can read our full article on this withdrawal here.


  • 3rd 10% withdrawal:

Retrieval requests must be submitted by 28th April 2022. This withdrawal is not taxable. You can read our full article on this withdrawal here.


Our recommendations how to proceed:

  1. If you are contributing independently as a foreign national (on boletas honorarios), this is so far the only opportunity to get access to your pension funds before retirement age as the full retrieval under law 18.156 is only available to contracted employees.
  2. If your current pension balance is approximately CL$ 3-4 million, we recommend to use the 10% allowances to retrieve the large proportion of your AFP balance rather than requesting a full withdrawal under law 18.156 (which is a much more arduous process – see our article here)
  3. You can submit your 10% requests together in a cluster and you will find the required forms published on each AFP company website. Note that this includes international payouts which are paid via Transferwise (now known as ‘Wise’).


 If you need further help with a personalized evaluation, please feel free to consult us.