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Costa Rica Pension Guide 2026

Costa Rica's pension system is built on the CCSS IVM (Invalidez, Vejez y Muerte) program, providing retirement, disability, and survivors' benefits. The standard retirement age is 62 for women and 65 for men. A complementary pension system (ROPC) provides additional retirement savings, and voluntary pension plans offer further tax-advantaged saving options.

CCSS IVM Pension System

The IVM (Invalidez, Vejez y Muerte) is the main public pension program administered by the CCSS. It covers disability, old-age (retirement), and survivors' benefits. Contributions are mandatory for all employees:

  • Employee contribution: 3.17% of gross salary
  • Employer contribution: 5.08% of gross salary
  • Retirement age: 62 for women, 65 for men
  • Minimum contributions: 300 months (25 years) for full pension
  • Pension calculation: Based on average salary of the best 240 months (20 years) of contributions

Complementary Pension System (ROPC)

The Régimen Obligatorio de Pensiones Complementarias (ROPC) is a mandatory complementary pension system. Employers contribute 1.5% and employees contribute 1.5% of gross salary to individually managed accounts. These funds are invested by authorized pension fund operators (Operadoras de Pensiones Complementarias — OPCs) and provide additional retirement income on top of the IVM pension.

Voluntary Pension Plans

Costa Rica offers voluntary pension plans (Régimen Voluntario de Pensiones Complementarias) that provide tax benefits. Contributions to these plans are deductible for income tax purposes, up to certain limits. Investment returns within the plan accumulate tax-free, and withdrawals are taxed as ordinary income. These plans are suitable for individuals seeking to supplement their IVM and ROPC benefits.

International Pension Considerations

Costa Rica has social security agreements with several countries that allow for the coordination of pension contributions. Retirees moving to Costa Rica should consider the tax treatment of foreign pensions. Under Costa Rica's worldwide income system, foreign pensions are taxable in Costa Rica for residents, but foreign tax credits may apply if tax was paid in the source country.

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