Glossary

AFP (Administradora de Fondos de Pensiones)

CO · CL · PE

Definition

A private company managing mandatory retirement contributions in Colombia, Chile and Peru — the equivalent of Mexico's Afore. Chile's AFPs offer five risk-graded fund types (A–E) that members can choose between.

Why it matters

Fees and historical performance differ between administrators in every one of these countries — comparing periodically is allowed and can matter for your eventual pension.