Affiliates of the Ecuadorian Social Security Institute (IESS) who can qualify for ordinary old-age retirement must turn 60 years old and have made at least 30 years of contributions.
Those with 40 years of contributions can also apply without any age limit; 65 years or older and with at least 15 years of taxes; and those who are 70 or older and have ten years of Social Security contributions.
To know the pension they will receive from the IESS on the 20th of each month, the worker must calculate an average of the five best years of salaries and the amount of taxes.
This estimate is made in accordance with the following steps detailed by the IESS on its website:
– The monthly average of each year of contributions is calculated by adding the salaries of twelve consecutive months and dividing by twelve.
– Of all the annual averages, the five highest are selected.
– The sum of these five averages is divided by five to obtain the final average, which will be the basis of calculation for the pension.
– This amount is multiplied by a coefficient established in the IESS. For example, the coefficient for 10 years of contributions is 0.5000; that of 15 years is 0.5625; that of 30 years is 0.7500; and the 40 year old is 1.0000.
According to this calculation, if a 60-year-old worker’s best wages over the five-year span average current basic compensation ($482) and he contributed over 30 years, his pension would be $361.5.
But if that same person works until age 65, with 35 years of taxes, they would get $391.6 each month. That is, $30.1 more for those five additional years of work.
In the event that the average salary amounts to $1,000 and contributions totaled 30 years, the future pensioner would receive a monthly amount of $750. And if he contributed to the IESS for 35 years, until age 65, he would receive $812.5 per month, $62.5 more than the previous one.
And if the average remuneration reaches $2,000 and you have worked for 30 years, the pension would be $1,500; If you contributed for 35 years it would add $1,625; and if you contributed for 40 years it would reach $2,000 each month.
In the case of a Nursing graduate, whose average salary was $2,100, she accesses a retirement pension of $1,653.7 for 33 years of service in a public hospital.
With that amount, this 61-year-old woman assures that it is enough to cover her expenses: “I was able to work a few more years, but the work environment was a little heavy, that’s why I preferred to retire at 60,” said this woman from Guayaquil. (I)
