Saudi Arabia is gearing up to launch a voluntary pension and savings program designed for both Saudi nationals and expatriate workers, marking a significant step in economic reform.

This initiative was highlighted in a detailed report by the International Monetary Fund (IMF), following their recent visit to the Kingdom under Article IV of their Articles of Agreement.

During these visits, IMF teams gather vital economic and financial data and engage with officials about the nation’s economic progress and policies.

The introduction of this voluntary pension plan seeks to bolster household savings within the Kingdom while potentially curbing remittance outflows, an aspect appreciated by the IMF delegation.

However, with significant assets under management-about 32% of GDP-the General Organisation for Social Insurance (GOSI) must enhance transparency through improved financial disclosure and clearer allocation protocols.

GOSI plays a pivotal role in managing social security and insurance schemes across Saudi Arabia.

The IMF commented that "the newly implemented pension reform should fortify long-term fiscal sustainability." The reforms, initiated in July 2024, involve raising retirement ages, extending contribution periods, hiking contribution rates, and tightening pension entitlements.

While immediate fiscal benefits from these changes are not anticipated due to the system's current equilibrium, their medium-term effects need thorough evaluation and communication.

Economic insights reveal that foreign remittances from Saudi Arabia rose by 14% last year, reaching SR144.2 billion (approximately US$38.4 billion).

Over the decade from 2015–2024, these outflows have surpassed SR1.43 trillion (US$381.3 billion). As of early 2025, there were 12.8 million subscribers enrolled in the nation’s social insurance system-with expatriates comprising nearly 77%, or close to 10 million individuals.

The revised Social Insurance Law took effect on July 3, 2024. This law modifies retirement benefits to better serve an aging population by increasing statutory retirement age requirements while revising pension calculations and extending required contribution periods for early retirement eligibility.

Under the new regulations outlined by GOSI, there will be a phased increase in pension contributions starting from the second year after implementation until the fifth year-an annual increment of 0.5%, culminating in a total rise of 2%. Consequently, this adjustment will elevate total contribution rates shared between employee and employer from the existing 9% to an eventual rate of 11%.