Saudi Arabia raises retirement age to 65
- By Web Desk -
- Jul 18, 2024
Saudi Arabia has increased the retirement age to 65 for workers in both the public and private sectors as part of its Vision 2030 reform plans.
The Saudi Cabinet meeting chaired by Crown Prince Mohammed bin Salman, approved the decision aims to ensure a sustainable lifestyle for citizens post-retirement and improve the conditions of retirees.
The new policy targets specific categories of workers in state institutions and is designed to ensure a sustainable and secure life for citizens after years of service.
The General Directorate for Retirement Affairs stated, that this change will be accompanied by pivotal 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 gradual, with an increase of four months in retirement age for each month until the new age limit is reached.
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.