When retiring for old age under the AFP system, each member chooses how to turn their savings into a pension. The two most common options are the annuity (renta vitalicia), bought from an insurance company, and programmed withdrawal (retiro programado), paid by the AFP itself. The choice matters: an annuity is irrevocable. In September 2026, 14,152 people retired, according to the Pensions Superintendency, and 5,333 old-age annuities were sold, according to the CMF (La Tercera). This guide explains the differences, the rates in force in November 2026 and what to ask before deciding. On Google, "renta vitalicia" gets about 2,900 monthly searches in Chile, according to Google Ads data pulled through DataForSEO.
View the data as a table
| Programmed withdrawal rate | 3.67% |
| Average annuity rate | 2.87% |
| Retirees in September | 14,152 |
| Old-age annuities sold | 5,333 |
Annuity vs. programmed withdrawal: the differences
| Feature | Annuity | Programmed withdrawal |
|---|---|---|
| Who pays | Life insurance company | AFP |
| Owner of the funds | They go to the insurer | They remain the member's |
| Pension amount | Fixed in UF for life | Recalculated every year and tends to fall with age |
| Market risk | Borne by the insurer | Borne by the retiree |
| Inheritance | Only survivor pensions and, if contracted, a guaranteed period | Remaining balance is inheritance if there are no pension beneficiaries |
| Can it be changed? | No: it is irrevocable | Yes: you can switch to an annuity later |
| Rate that sets the pension | Offered by each insurer (2.87% average in October 2026) | Superintendency technical rate (3.67% since October) |
Sources: Pensions Superintendency; La Tercera. There are also mixed options, such as temporary income with a deferred annuity and an immediate annuity combined with programmed withdrawal.
The programmed withdrawal rate since 2021
In programmed withdrawal, the pension is calculated by dividing the balance by a "necessary capital" that depends on life expectancy and a technical interest rate set by the Superintendency by circular. The higher the rate, the higher the pension from the same balance. Since October 2021 that rate ranged between 3.31% (Jan 2026) and 4.96% (Jan 2022), according to circulars from the Pensions Superintendency. The rate for pensions calculated from October 2026 is 3.67% (Circular 2425), and from November 3 the Superintendency will review it monthly instead of quarterly (La Tercera).
View the data as a table
| Technical rate | |
|---|---|
| Oct 2021 | 4.42% |
| Jan 2022 | 4.96% |
| Apr 2022 | 4.62% |
| Jul 2022 | 4.34% |
| Oct 2022 | 4.01% |
| Apr 2023 | 4.11% |
| Jul 2023 | 4.32% |
| Oct 2023 | 4.71% |
| Apr 2024 | 4.41% |
| Oct 2024 | 4.14% |
| Jan 2025 | 3.43% |
| Apr 2025 | 3.54% |
| Oct 2025 | 3.41% |
| Jan 2026 | 3.31% |
| Jul 2026 | 3.45% |
| Oct 2026 | 3.67% |
| Oct 2026 | 3.67 | 2,425 |
| Jul 2026 | 3.45 | 2,417 |
| Jan 2026 | 3.31 | 2,407 |
| Oct 2025 | 3.41 | 2,403 |
| Apr 2025 | 3.54 | 2,386 |
| Jan 2025 | 3.43 | 2,375 |
| Oct 2024 | 4.14 | 2,364 |
| Apr 2024 | 4.41 | 2,343 |
| Oct 2023 | 4.71 | 2,323 |
| Jul 2023 | 4.32 | 2,309 |
| Apr 2023 | 4.11 | 2,295 |
| Oct 2022 | 4.01 | 2,268 |
| Jul 2022 | 4.34 | 2,255 |
| Apr 2022 | 4.62 | 2,241 |
| Jan 2022 | 4.96 | 2,227 |
| Oct 2021 | 4.42 | 2,214 |
Does your company offer annuities or pension advice? Reach people researching before retiring on Pauta Financiera.
See advertising optionsAnnuities: how quotes work and what changes with rates
Annuity offers are requested through the Pension Amount Inquiry and Offer System (SCOMP), which provides quotes from several insurers in UF. The average sale rate rose from 2.82% in September to 2.87% in October 2026, the highest in just over a year (La Tercera). A practical detail: the rate is locked when the offer is accepted, but the balance transferred can change during the four to five weeks the process takes. In a case published by La Tercera, the balance certificate was UF 5,821.49 on September 9, the premium transferred on October 5 was UF 5,563.81, and the offered pension of UF 24.70 ended at UF 23.61, 4.41% less.
The rates are not directly comparable for deciding: an annuity guarantees the amount for life and the insurer bears longevity risk; programmed withdrawal generally starts with a higher pension that then falls with annual recalculations. This year, members in Funds D and E also saw their balance drop before retiring because of rising rates; we cover it in Fund E and the programmed withdrawal recalculation.
What to consider before choosing an annuity or programmed withdrawal
- Health and life expectancy: programmed withdrawal can deplete much of the balance at advanced ages; an annuity pays the same however long you live.
- Inheritance: if leaving a balance to heirs is a priority, programmed withdrawal allows it; with an annuity you can buy a guaranteed period, which lowers the pension.
- Market timing: offers depend on the day's rates; with rising rates, pensions per UF saved tend to rise.
- PGU: the Universal Guaranteed Pension is added to the self-funded pension subject to requirements; amounts are in PGU 2026.
- Advice: the law allows hiring a registered pension adviser; their fee has a legal cap, and it is worth asking upfront.
To see how the funds have performed before retiring, check AFP returns in 2026. This article is educational and is not a recommendation on the type of pension: the decision depends on each person's situation.
How to choose the type of pension, step by step
- 1. Application at the AFP: you file the old-age pension application and the AFP issues the balance certificate.
- 2. SCOMP inquiry: you request annuity offers from insurers and the AFP's programmed withdrawal amount, all in UF on the same certificate.
- 3. Comparison: besides the amount, look at each insurer's risk rating, the guaranteed period and whether there are survivor beneficiaries.
- 4. Acceptance: when an annuity offer is accepted the rate is locked; transferring the funds to the insurer takes a few weeks and the final amount may vary if the balance changes.
- 5. Programmed withdrawal: if no annuity is chosen, the AFP pays the pension and recalculates it every year using the current rate and life expectancy.
In the best case the process takes about five weeks from application to transfer to the insurer, and at least about four weeks from requesting offers in SCOMP, according to pension advisers consulted by La Tercera. In a year of volatile rates like 2026, that time can change the outcome, as the case of the pension that fell 4.41% between offer and payment showed.
Frequently asked questions about annuities and programmed withdrawal
Which is better, an annuity or programmed withdrawal?
It depends: an annuity gives lifelong stability and leaves no inheritance; programmed withdrawal keeps ownership of the funds but the pension falls over time.
What is the programmed withdrawal rate in 2026?
3.67% for pensions calculated from October 2026; it was 3.31% in the first half and 3.45% in the third quarter.
Can you switch from an annuity to programmed withdrawal?
No. An annuity is irrevocable. You can, however, move from programmed withdrawal to an annuity.
What is SCOMP?
It is the system where insurers' pension offers and the AFP's programmed withdrawal amount are requested and compared.
