Saudis May Work Longer, Pay More to Fill Pension Fund Gap - Bloomberg
Saudi Arabia is considering revamping the kingdom’s pension system to require citizens to work longer and contribute more, another hit to living standards that could undermine public support for Crown Prince Mohammed bin Salman’s efforts to reshape the oil-reliant economy.
The government -- faced with an estimated actuarial gap of 800 billion riyals ($213 billion) at the state-controlled pension fund -- is weighing proposals to increase the retirement age, according to three people familiar with the matter, who asked not to be identified to discuss confidential deliberations. It could also require workers to contribute more of their salaries to the General Organization for Social Insurance, or GOSI, which manages both public and private sector pensions, the people said.
A final decision on the details of the changes and whether to implement them has not yet been made, the people said.
Saudi officials have warned the current system is unsustainable. That’s a quandary pension programs the world over have faced as people have lived longer -- but with a decidedly Saudi twist.
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