Saudi Arabia Plans Voluntary Pension and Financial savings Program for Saudis and Expatriates

Saudi Arabia Plans Voluntary Pension and Financial savings Program for Saudis and Expatriates

Saudi Arabia is making ready to announce a brand new voluntary pension and financial savings program that might be out there to each Saudi residents and international employees, in accordance with the Worldwide Financial Fund’s (IMF) Article IV session report, reported by Al-Eqtisadiah newspaper.

International remittances from Saudi Arabia rose by 14 p.c final yr, reaching SR144.2 billion ($38.4 billion). Between 2015 and 2024, remittances totaled SR1.43 trillion.

As of the primary quarter of 2025, Saudi Arabia had 12.8 million subscribers within the social insurance coverage system, of which 77 p.c (practically 10 million) had been expatriates.

The IMF report famous that Saudi Arabia just lately accredited pension reforms in July 2024 to enhance long-term monetary sustainability. These reforms included:

➤ Elevating the retirement age.

➤ Extending contribution durations.

➤ Rising contribution charges.

➤ Proscribing sure pension advantages.

The IMF defined that whereas these modifications is not going to convey quick fiscal financial savings as a result of the system is at present balanced, it is very important assess and disclose the medium-term affect.

The IMF additionally highlighted the scale of GOSI’s belongings (Common Group for Social Insurance coverage), which equal 32 p.c of Saudi Arabia’s GDP. It pressured the necessity for better transparency, together with clearer monetary disclosures and guidelines for asset allocation.

Saudi Arabia Plans Voluntary Pension and Financial savings Program for Saudis and Expatriates