The retirement age for Saudi government employees is set to increase from 60 to 62 after the Shoura Council on Monday approved the move.
While several experts have reportedly said employees should retire at 65, the new age was approved in a vote 59-56.
Supporters said the present retirement age did not reflect the present health and social care available in the kingdom, which was improving people’s life expectancy, Arab News reported.
“The present financial condition of the pension’s fund demands measures to increase its revenues, including extending the retirement age,” another member was quoted as saying.
Opponents, however, said it would reduce job opportunities for young Saudi men and women.
Mohammed Al Kharashi, governor of the pension fund, said his organisation had proposed a new retirement law incorporating citizens’ opinions and said 60 was the lowest retirement age in the world, Arab News reported.
“In some countries, it’s 68 in the Gregorian calendar,” he said.
Abdelelah Saaty, dean of the College of Business in Rabigh, said the retirement age should be extended to 65 in line with other countries.
“Life expectancy in the kingdom has now reached 75 and employees can stay longer with better health,” he was quoted as saying.
He urged the pension fund to change its investment strategy to increase its revenue.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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