GOSI official says early pension depletes funds, returns on investment ‘insufficient’

Nader A. AlWahibi, Assistant Governor for Insurance Affairs at the General Organization for Social Insurance (GOSI), said that early pension schemes deplete funds.  

The number of early pensioners rose significantly, AlWahibi told Saudia TV, adding that they live for a longer time. As the average retirement age reaches 48 years, they continue to receive pensions until they become 77 years old. 
 

The 9% deduction is insufficient for the payment of pensions, even if GOSI achieved huge returns on investment. He highlighted that it would be 'very difficult' to pay pensions if the current rise in the number of early pensioners continues. 
 

The official also said that Saudi Arabia is among the countries with lowest retirement age, adding that such age can reach 67 years in Scandinavian countries.

"We are not a government entity that plans for an upcoming year. We, rather, plan for subscribers, who currently enter the labor market to obtain their pensions upon reaching the age of retirement," said AlWahibi.