The amount of pension to receive when an affiliate retires depends on at least three factors: retirement age, years of contribution, and the average salary of the five best years. These factors combine to arrive at the retirement amount.
Although, in accordance with current regulations, the average of the five best years is taken into account to calculate the pension, what will be received It will be a percentage in relation to the number of years of contribution and a table that has been created for the purpose with a coefficient, which can be read precisely as a percentage.
Then, The minimum retirement age in Ecuador is 60 years, as long as 360 contributions have been made, that is, 30 years of contributions. If an affiliate meets these requirements, they will only receive 75% of that average. An affiliate may receive 100% of retirement if he reaches 40 years of contributions (480 deposits).
However, there are many people who If they started working from a very young age, they will cover the 360 contributions before they turn 60. Then they could have more years of contributions before retiring. This causes your pension to increase, that is, you will have a higher percentage of the average salary.
For example, María Carrión started working when she was 22 years old, and now she has just completed 30 years of continuous contributions. I mean, she’s only 52 years old. Because of her age, she still cannot retire and she has to contribute 8 more years. She will not receive only 75%. Well, when he reaches the minimum age (60 years) he will have contributed 38 years and according to the table he will receive 89.7% of the average of the five best years of salaries.
| Pension calculation table | ||
|---|---|---|
| years contributed | coefficient | as a percentage of the average of the best 5 years of salary |
| 5 | 0.4375 | 43.7% |
| 6 | 0.4500 | Four. Five % |
| 7 | 0.4625 | 46.2% |
| 8 | 0.4750 | 47.5% |
| 9 | 0.4875 | 48.7% |
| 10 | 0.5000 | fifty % |
| eleven | 0.5125 | 51.2% |
| 12 | 0.5250 | 52.5% |
| 13 | 0.5375 | 53.7% |
| 14 | 0.5500 | 55% |
| fifteen | 0.5625 | 56.2% |
| 16 | 0.5750 | 57.5% |
| 17 | 0.5875 | 58.7% |
| 18 | 0.6000 | 60% |
| 19 | 0.6125 | 61.2% |
| twenty | 0.6259 | 62.5% |
| twenty-one | 0.6375 | 63.7% |
| 22 | 0.6500 | 65% |
| 23 | 0.6625 | 66.2% |
| 24 | 0.6750 | 67.5% |
| 25 | 0.6875 | 68.7% |
| 26 | 0.7000 | 70% |
| 27 | 0.7125 | 71.2% |
| 28 | 0.7250 | 72.5% |
| 29 | 0.7375 | 73.7% |
| 30 | 0.7500 | 75% |
| 31 | 0.7625 | 76.2% |
| 32 | 0.7750 | 77.5% |
| 33 | 0.7875 | 78.7% |
| 3. 4 | 0.8000 | 80% |
| 35 | 0.8125 | 81.2% |
| 36 | 0.8325 | 83.2% |
| 37 | 0.8605 | 86% |
| 38 | 0.8970 | 89.7% |
| 39 | 0.9430 | 94.3% |
| 40 | 1,0000 | 100% |
| Source: IESS |
In the table presented by the IESS, it is also possible to calculate what happens to the retirement of affiliates who have fewer years of contribution, but who are older.
It is that in the IESS regulations it is also stated that an affiliate who turns 65 can retire with just 15 years of contributions. It also establishes that someone who is 70 years old and made a 10-year contribution can retire with an IESS pension. However, in both cases, the pension will be less. In the first case, at the age of 15, 56.2% of the average of the best salaries is received; in the second with 10 years only 50%.
To illustrate if a person started working late, or just joined at 38 years of age, they must contribute at least 27 years (reaching age 65) to be able to retire. According to the table, he would receive 71.2% of the average salary of his best five years. Another example, if a person decided to enroll only at age 50, he contributes 15 years and can retire, but the pension will only be slightly higher than half of his best salaries (56.2%).
These days, in Ecuador they seek to raise a debate on the sustainability of the pension fund. According to some experts, the IESS pension fund could be between two and ten years old. This, because the contributions that the IESS receives from affiliates are not enough to cover current retirees, in addition, the State does not pay everything it should for its legal contribution of 40% of pensions. In addition, the years of retirement pensions that the IESS must deliver have increased due to greater life expectancy.
In this sense, The increase in years for retirement could be a factor to analyze in order to reach a legal reform in the IESS. The rules could change, but for now the way it is calculated is as indicated above.
The various future scenarios are being worked on by an interdisciplinary commission of experts created by the Government and chaired by the expert on economic issues Augusto De la Torre.
Source: Eluniverso
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
