Retirement Requirements: Steps, Calculation, and MORE

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Is it time for you to retire? Then you must know the Retirement Requirements. Along with these, it is also important to know what the procedure entails, how to calculate the pension, what are the retirement values ​​and who is in charge of retirement in Ecuador.

The Retirement it is nothing more than the act of going from being an active worker to a passive one. The reasons for which a person can retire can vary, but generally it happens because the maximum age is reached.

Whatever the reason, it is important that you know all these aspects that we have just mentioned. That is why we have brought this article for you, so that you know exactly what you need now that you are going to retire. Do not miss it!

What are the Requirements for Retirement in Ecuador?

Let’s start with the Requirements for Retirement. These are especially important because they will tell you if you have what you need to process a retirement and receive a pension. The aspects that are analyzed are age and contributions to date.

The Ecuadorian Institute of Social Security (IEES) indicates that members must meet the following requirements to request old-age retirement:

Age ImpositionsYears of contributions
60 years of age or older360 or more30 more
65 years of age or older180 or more15 or more
70 years of age or older120 or more10 or more
No age limit480 or more40 or more

Without meeting these requirements, you will be able to receive the life pension on a monthly basis. You will start receiving this one month after you stop working, on the first day.

In the case of volunteer affiliate, they must notify any Universal Service Center of the Institute of their departure. Later, you can apply for retirement.

Additionally, you will also need the following requirements to perform the Retirement Application:

  • Identity card, so you can enter your identity number.
  • Appear as unemployed in Labor History. For this you must be unemployed with all your employees and register departure notice.
  • Do not have loans in default with the Institute.
  • Have a registered bank account on the IEES page.
  • You should not have an application of this same nature in process.
  • Active benefits are seen as an obstacle to applying for retirement.
  • You must pay the contributions for the month you stopped working. You have until the 15th of the following month to do so.
  • Finally, you must be inside the protection period and comply with contributions.

But calm down! You will see how and where you will need these documents. Just wait for the next section, in which we will explain the Steps to Retirement.

Steps to Retirement in Ecuador

The Steps to Retirement in Ecuador They will allow you to know what you need to do once you have confirmed that you meet the requirements established in the previous section. If you follow the instructions that we will give you below to the letter, you should not have any problem registering your retirement. Let’s see.

  • First, you must enter the web portal of the Pension system. You do this by clicking on the link and entering your ID number and your IEES password. You can also enter the page of the IEES> Insured> Pensioners> Online Services> Retirement.
  • Once inside, enter Register Request, option found just above Queries.
  • Click on Old Age Retirement. You also have the option of ISSA (for members of the Armed Forces), ISSPOL (for members of the Police) and Zafreros (sugar cane workers).
  • Wait for IEES to verify that you meet all the Retirement Requirements. Once it is processed, you will be able to see a history with the requirements that have been analyzed. If you meet them, everyone should have a check
  • In this case, you can click on the option Accept or Continue.
  • And that’s it! You just have to confirm that the personal data is correctly registered and now you will have your Retirement Application ready.

You can see the status of your request in the left menu. You just have to enter the IEES page again, section Policyholders> Pensioners> Online Services. Once there, click on Retirement and enter your identity card. Then proceed to enter Queries> Request Status Query> List.

If this is approved, remember that you are going to start collecting your pension the month after registering your termination at IEES.

Retirement Requirements: Pension Calculation

The Calculation of the Pension It is also supplied by the Ecuadorian Social Security Institute (IEES). This will allow you to know how much your pension corresponds to what you have contributed.

For the calculation basis of the transitional regime pension, the procedure is quite interesting. The system takes the five years with the highest salaries on which a contribution was made, adds them up and divides them by five. That is, take an average of these salaries.

To be clear, it does the sum of the twelve consecutive months of wages. These are counted from the first contribution that is registered in employment history until reaching the current month. In total, they must have 120 contributions or 10 years working (minimum) under a dependency relationship to request retirement.

In reality, it’s very easy. If in 10 years you made contributions every month, you must have 120 contributions and you can retire. The sum of the 12 months in a row will give the annual income that you had on those occasions, which will allow you to choose the best five salaries to average them and determine the calculation basis.

IEES and the Universe facilitate a coefficient table so that you can make the approximate calculation of the pension yourself. These vary depending on the years of contributions.

Let’s see some examples so you can better understand how to calculate your pension.

Example 1

Assuming you meet all the Retirement Requirements, that you have been working for 10 years and that the sum of your five best years of annual income is equivalent to $ 45,000, the calculation would go like this:

Average income per year: $ 45,000 / 5 years = $ 9,000. On average, you made $ 9,000 per year.

Average monthly income: $ 9,000 / 12 months = $ 300. On average, your salary was $ 300 a month.


Monthly pension income: $ 300 x 0.50 = $ 150 dollars. Monthly you should receive about $ 150 dollars of pension.

Example 2

Assuming that you meet all the Retirement Requirements, that you have been working for 28 years and that the sum of your five best years of annual income is equal to $ 75,000, the calculation would go like this:

Average income per year: $ 75,000 / 5 years = $ 15,000. On average, you made $ 15,000 per year.

Average monthly income: $ 15,000 / 12 months = $ 1,250. On average, your salary was $ 1,250 per month.

Monthly pension income: $ 1,250 x 0.7250 = $ 906.25 dollars. Monthly you should receive about $ 906.25 in pension.

You can see the income that you have accumulated so far in the Pension System. Pensioner> Retirement> See Rent. The procedure is the same as you did to see the contributions.

If you want to see more examples or you have doubts about how you can see your approximate income, you can enter this link.

Retirement Requirements: Retirement Values

The Retirement Values are those minimum pensions and maximums that are determined based on contributions and in proportion to the minimum basic salary of an average worker.

For 2020, the IEES publishes the following values ​​regarding the minimum pensions, be these due to old age, disability or old age due to disability:

Minimum Pensions

  • Up to 10 years of contributions: the minimum pension is $ 200.00 dollars.
  • From 11 to 20 years: the minimum pension is $ 240.00 dollars (per month)
  • From 21 to 30 years: the monthly pension is located at $ 280.00 dollars.
  • 31 to 35 years of contributions: the minimum monthly pension is $ 320.00 dollars.
  • 35-39 years of contributions: the minimum pension is $ 360.00 dollars.
  • More than 40 years of contributions: the minimum pension for this case is $ 400.

Maximum pensions

In the case of maximum pensions, disability retirement is taken into account independently. Let’s see:

  • Between 10 and 14 years of contributions: the maximum pension is $ 1,000 per month.
  • Between 15 and 19 years of contributions: the maximum pension is $ 1,200.
  • 20 and 24 years of contributions: the monthly pension is located in the $ 1,400 dollars.
  • 25 and 29 years of contributions: the pension can be up to $ 1,600 per month.
  • Between 30 and 34 years of contributions: the maximum pension is $ 1,800.
  • Between 35 and 39 years of contributions: the maximum pension is $ 2,000 dollars.
  • Finally, the disability retirement can offer a pension of up to $ 1,800.

These are very good values, as you can see.

Who is in charge of retirement in Ecuador?

The Ecuadorian Institute of Social Security (IEES) It is responsible for supplying the members of the compulsory universal insurance. It is a public body founded recently, only 11 years ago. Its headquarters are located in Quito.

All employers are obliged to register the employee in Social Security, informing through the History System of the eventualities that they have with the worker. This is mandatory, as established in the Constitution of Ecuador.

Members of IEES enjoy multiple benefits. Among them, they are protected in maternity, illness, disability, work accidents, unemployment and, as you have seen so far, they also enjoy pensions.

Even people who are domestic workers can make the affiliation, to have insurance on disability, old age, death and disability. Funeral assistance and pensions are included.

Additionally, as if that weren’t enough, the rights that members enjoy extend to family members and spouse, although under certain conditions. But among these rights are those of medical care and income in case for the orphan to the widow.

In conclusion, it is the IEES who is in charge of the Ecuador retirement, be it due to old age or disability.

Retirement Requirements: What is it?

As we said at the beginning of this article, the Retirement it is nothing more than the act of going from being an active worker to a passive one, that is, to stop working. The state grants pensions to retirees for the years rendered of services and the total contributions of their salaries.

In Ecuador, it is the IEES who is in charge of managing this area, be it retirement due to old age, which is the one we have discussed today and the most common, or due to disability. This is the one that sends the pensions to the beneficiaries, and these can be between $ 200.00 and $ 2,000 dollars.

We hope we have helped you with the Retirement Requirements.

Until next time!

Visit GESTIONALO.NET Ecuador


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