Saudi Arabia raises retirement age to 65.
The retirement age for workers in Saudi Arabia has been increased to 65 as part of its Vision 2030 reform plans.
This reform applies to both the private and public sector.
Crown Prince Mohammed bin Salman chaired the cabinet meeting and okayed the decision which aims to guarantee a sustainable lifestyle for citizens post-retirement and enhance the conditions of retired employees.
The new policy targets specific categories of workers in state institutions and is designed to promise a sustainable and secure life for citizens after years of service.
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According to the General Directorate for Retirement Affairs, this change will come with crucial amendments in the social insurance system that are expected to result in higher pension payouts for employees.
The implementation of the new retirement age will be slow, with an increase of four months in retirement age for each month until the new 65-year limit is reached.
A decline in working-age population will put pressure on the potential growth of GDP per capita. If retirement age remains constant & life expectancy rises, more people will be applying for pension benefits
How Saudi Arabia can adapt as its population ages https://t.co/gOUDEjHjTx— Maha Akeel مها عقيل (@MahaAkeel1) July 21, 2023
This policy will apply to citizens who are under 48 years and 6 months old at the time of the decision’s issuance.
Individuals above this age will have a fixed retirement age of 58 years and 4 months, and no adjustments will be made.
Meanwhile, younger workers, specifically those under 29 years of age at the time of the policy implementation, will see their retirement age set at 65 years.
