State Pension Plan
If you are registered at IESS and pay your monthly contributions, you are building up a pension and have public health care coverage.
The contribution amounts 9.45 %, which is deducted monthly from your wages. For example, when you earn $1000 USD per month, a wage above average, your IESS contribution is $94,50 USD per month. This is not the full IESS registration cost: your employer pays 11,15% to IESS on top of your $1000 USD salary.
The age you can retire and claim your IESS pension depends on how many years you contributed combined with your age. For example, if you paid your IESS contribution for 40 years, you can retire, no matter the age, but if you have contributed for 10 years, you can retire before reaching the age of 70.
Years of contribution – min. age
40 or more – No age limit
30 or more – 60 years
15 or more – 65 years
10 or more – 70 years
For more information, see the IESS website.
Company Pension Plan
Because being employed automatically means contributing to IESS, company pension plans are not common in Ecuador.
Private Pension Plan
Not many Ecuadorians have private pension plans, people prefer to invest in properties, for example.
Expat Pension Plans
A few countries have a bilateral agreement with Ecuador that allow for years worked in Ecuador to count to their State pension. Inquire with your state plan about the particulars.
If your country does not allow for years worked in Ecuador to count toward your state pension, there may be an opportunity to buy back time once you have returned to your home country and are once again contributing to the pension plan. Again, inquire with your state plan about the particulars.
Update 24/01/2019
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