62 to be the age of retirement

62 to be the age of retirement
Updated 13 May 2014

62 to be the age of retirement

62 to be the age of retirement

The Shoura Council on Monday approved a proposal to extend the retirement age of government employees from 60 to 62 in accordance with the Hijri (lunar) calendar, while several experts insist that employees should retire at 65.
Fifty-nine members voted in favor of the motion, while 56 opposed, said Fahaad Al-Hamad, it assistant president. “The meeting reached this conclusion after hearing a report from Muhammad Al-Naji, chairman of the management and HR committee.”
Supporters said the present retirement age does not reflect the present health and social care available in the Kingdom, improving people’s life expectancy. At present, employees retire when they are in a better position to contribute more to the country’s progress, one member said.
“The present financial condition of the pension’s fund demands measures to increase its revenues, including extending the retirement age,” said another member. Opponents, nevertheless, said it would reduce job opportunities for young Saudi men and women.
Mohammed Al-Kharashi, governor of the pension fund, said his organization has proposed a new retirement law incorporating citizens’ opinions.
He described 60 as the lowest retirement age in the world. “In some countries, it’s 68 in the Gregorian calendar,” he said, adding that early retirement would lead to wastage of capabilities and expertise acquired by employees.
Abdelelah Saaty, dean of the College of Business in Rabigh, said the retirement age should be extended to 65 as in many other countries. “Life expectancy in the Kingdom has now reached 75 and employees can stay longer with better health,” he said. He urged the pension fund to change its investment strategy to increase its revenue.