In Ecuador, members of the Ecuadorian Social Security Institute (IESS) can request old-age retirement starting at age 60, depending on the total number of contributions made.
According to current regulations, a person can retire at age 60 if they accumulate at least 360 contributions, that is, 30 years of contributions. On the other hand, those who wait until age 65 can do so with a minimum of 180 contributions, equivalent to fifteen years.
The amount of the pension in the IESS is calculated based on the time of contributions and the average salary, not only by age.
The difference appears in the time during which that income is received. If a person retires at age 60, they will begin to receive the pension five years earlier than someone who decides to wait. In this additional period, the affiliate is already receiving monthly payments from the system.
For example, if two people have similar contribution and salary conditions, but one retires at 60 and the other at 65, the first will accumulate five additional years of pension income.
On the other hand, if the person who retires at age 65 only completed the required fifteen years of contributions, his or her pension could be significantly less than that of a person who contributed for 30 years.
In any case, continuing to work for more years may imply greater contributions and even an increase in the monthly value of the pension if the salary is increased. (YO)
