RIYADH: Fatima is 70 years old and the widow of an ex-military officer who passed away three years ago.

She lives alone at home, and although she says she is in good health considering her age, she still needs care.

“ I receive SR 3,400 a month, which is my late husband’s pension. I am expected to use it to pay my bills, the maid (SR1,500), my driver (SR1,700) as well as for essential modifications around the house that I need due to my age. You do the math and tell me how I can survive.”

Fatima is not the only victim of the perceived injustices of the pension system.

Salam is also the widow of an ex-officer, who was in the air force, and although she receives far better benefits than Fatima, her expenses are higher as she suffers from Alzheimer’s and needs special care.

“How can SR5,000 (a month) be sufficient to get a caretaker at between SR1,900-SR2,500 (a month) to watch over her?” says her son, adding that he and his brothers take turns in watching her and giving her medicine.

“We have homes we need to provide for, yet our mother is our responsibility so we try to fill in the gaps and chip in with what we can”.

According to a bill presented by members of the Shoura Council, which called for a minimum annual increase of 5 percent for pensions to offset inflation, 54 percent of pensioners suffer financial problems when they retire. Although the Administration and Human Resources Committee in the Council challenged the proposal, describing it as unrealistic, the majority of members voted for it to be considered and for further studies to be conducted.

“The bill was presented based on the fact that an employee, who usually receives a minimum 5 percent annual increase on his salary, only receives a fixed pension after retirement. Considering that salaries for the past 15 years do not really increase in line with global and domestic inflation, retirees face a bigger problem, once the increase is taken out of the equation,” says Mohammad Al-Gowayhes, one of the Shoura members who presented the bill.

According to the research contained in the bill, 35 percent of retirees look for jobs to improve quality of life, as their incomes are not enough to cover electric, water and phone bills. A similar number are not able to afford daily essentials such as food and clothes while 69 percent look to increase their incomes.

According to Al-Gowayhes 63 percent of the retirees do not own homes.

“The issue of accommodation is a major one, and although the Kingdom had paid attention by establishing the General Authority for Housing with a SR10 billion budget, this was mainly to construct houses for those on limited incomes and the poor. The retirees need a different project (specifically for them), and this is also to be reconsidered soon.”

The increase, the bill suggests, should be in accordance with annual inflation but not less than 5 percent.

“Annual inflation a few years back was one percent but it reached 10 percent recently with the devaluation in the purchase price of the Saudi riyal,” says Al-Gowayhes, adding that retirees’ problems increase after retirement, either with regard to health or with the growing demands of their children as they grow.

A death can also increase problems for a family, as sometimes the pension is redcued by less than half or to the minimum of SR1,700.

“How can the retiree’s family live on such an income?” asked Al-Gowayhes.

The bill reviewed other countries’ policies regarding an annual increase in pensions, which varies between 3-6 percent while some adjust them according to inflation. The bill also calls for a reform of the civil retirement and the military systems as well as the social insurance system.

Al-Gowayhes sees an approval of the bill as a breakthrough, as it will secure an annual increase that can be adjusted according to the needs of pensioners.

He added that the committee’s initial objections to the bill were based on financial reasons, due to the pressure it would put on the budgets of the Public Pension Agency and the General Organization for Social Insurance.

“The government should intervene by supporting the funds. Wise investments in social insurance and wage deductions for pension should also be considered so we do not end up with retirees who suffer later in life.”