Saudi Arabia to launch voluntary pension and savings scheme for foreign workers
New program aims to boost household savings and curb remittances abroad.
Saudi Arabia is preparing to announce a new voluntary pension and savings program that will be open to both Saudi and foreign workers, according to the International Monetary Fund’s (IMF) latest Article IV consultation report.
The program is designed to boost household savings and help curb the outflow of workers’ remittances abroad.
The Public Pension and Savings Program is anticipated to be unveiled soon.Foreign remittances from Saudi Arabia rose 14 percent last year to SR144.2 billion, totaling SR1.43 trillion over the past decade (2015–2024).
As of the first quarter of 2025, there were 12.8 million subscribers in the social insurance system, with nearly 10 million being expatriates.Recently implemented pension reforms, approved in July 2024, are expected to strengthen long-term financial sustainability.
These reforms include raising the retirement age, extending contribution periods, increasing contribution rates, and restricting pension benefits.
Although these changes may not generate immediate fiscal savings since the system is currently balanced, the IMF stressed the need to fully assess and disclose the medium-term impact.The upcoming voluntary pension and savings program, open to both Saudis and expatriates, has been described as a welcome step that could significantly enhance household savings and reduce external remittances.
The IMF also highlighted the size of GOSI’s assets, which amount to 32 percent of Saudi Arabia's GDP, emphasizing the importance of improving transparency through stronger financial disclosures and clearer allocation rules.
The program is designed to boost household savings and help curb the outflow of workers’ remittances abroad.
The Public Pension and Savings Program is anticipated to be unveiled soon.Foreign remittances from Saudi Arabia rose 14 percent last year to SR144.2 billion, totaling SR1.43 trillion over the past decade (2015–2024).
As of the first quarter of 2025, there were 12.8 million subscribers in the social insurance system, with nearly 10 million being expatriates.Recently implemented pension reforms, approved in July 2024, are expected to strengthen long-term financial sustainability.
These reforms include raising the retirement age, extending contribution periods, increasing contribution rates, and restricting pension benefits.
Although these changes may not generate immediate fiscal savings since the system is currently balanced, the IMF stressed the need to fully assess and disclose the medium-term impact.The upcoming voluntary pension and savings program, open to both Saudis and expatriates, has been described as a welcome step that could significantly enhance household savings and reduce external remittances.
The IMF also highlighted the size of GOSI’s assets, which amount to 32 percent of Saudi Arabia's GDP, emphasizing the importance of improving transparency through stronger financial disclosures and clearer allocation rules.
