Saudi Arabia has significantly advanced its position in the global pension landscape, ranking 12th out of 55 countries in the 2026 Marsh CFA Institute Global Pension Index. This marks a substantial improvement from its 27th place standing in 2022 and positions the Kingdom as the highest-ranked member of the Gulf Cooperation Council (GCC). The overall pension system score rose to 73.2 out of 100 in 2026, up from 67.6 the previous year.
The index evaluates pension systems based on three core pillars: adequacy, sustainability, and integrity. Saudi Arabia recorded gains in each category, with integrity showing the most notable increase of 9.3 points to 83.5, earning an A rating—the highest in that category. Sustainability improved to 61.2 from 54.6, while adequacy edged upward from 75 to 77.2. These improvements helped the Kingdom maintain an overall B grade for its pension system.
Saudi Arabia's ranking surpasses a number of long-established pension systems including the United Kingdom, Canada, France, Germany, Belgium, Ireland, and Hong Kong, all of which also hold a B grade. The progress is attributed to governance reforms, enhancements in regulatory frameworks, modernization of data management, and stronger protections for pension beneficiaries.
The advances come amid ongoing reform efforts led by the General Organization for Social Insurance aimed at modernizing Saudi Arabia’s social insurance system, enhancing retirement benefits, and ensuring the system’s sustainability over the long term. Among recent legislative changes is the implementation of a new Social Insurance Law, which took effect in July 2024. This law introduced a retirement age of 65 for eligible new entrants to the workforce and revised early-retirement eligibility criteria.
The Marsh CFA Institute Global Pension Index—published in collaboration with the Monash Centre for Financial Studies—examines the retirement income systems of 55 countries, representing about two-thirds of the global population. Its 18th edition provides a comprehensive assessment based on more than 50 indicators.
Complementing these findings, a study released by BlackRock in June highlighted opportunities for Saudi Arabia to increase household retirement savings and direct more capital into long-term investments. Kashif Riaz, head of BlackRock Riyadh Investment Management and Middle East Financial Advisory, noted that developing effective retirement systems presents not only social benefits but also substantial capital market opportunities. He emphasized that shifting toward funded, long-term savings frameworks could help mobilize domestic capital, bolster local financial markets, and contribute to broader economic diversification efforts in the Kingdom.