After reaching the age of 60, citizens begin to visualize that their working active phase is coming to an end and thus they will receive income for their contributions.

In Ecuador, a person working in a company must be affiliated with the Ecuadorian Social Security Institute on a mandatory basis. There, he allocates a portion of his salary to the institution for various services he can access, such as health, death expenses, and even pension. The employer also gives a percentage to the subject.

In order to access the old-age pension, you will have to meet several conditions, such as age and time of contribution. The wages you have received also play an important role as they will determine the amount you will receive. In 2023, the maximum pension a person can receive is $2,475.

Five savings options you have for retirement

Because of this limitation and according to their economic possibilities, some people opt for private fundraising services and thus supplement their pension through insurance companies. The technical name of these products is life annuity insurance.

There are offers in the local market as low as $25 per month to maintain an individual fund. The contribution quota, as well as the accumulation goal and savings conditions, are determined by each person according to their plans, needs, family and economic situation. The goal can be a pension, but it can also have other purposes that the client wants, such as investing in a business, paying for studies, purchasing a vehicle or real estate.

Learn more about other alternatives, other than IESS, for savings and money for old age

Acquiring early will allow you to have lower monthly or annual contribution quotas to reach your goal and so you can ultimately generate a better income. If you do this at a later age, it will cause the opposite.

These are other products that can be chosen for retirement: