Saudi Arabia has a significant opportunity to strengthen its retirement system while unlocking billions of riyals in long-term domestic investment, according to a new report by BlackRock.
The “Read on Retirement: GCC 2026” report found that many workers feel financially secure today. However, far fewer have built adequate retirement savings. The report argues that expanding workplace retirement plans and encouraging long-term investing would improve financial security and support Saudi Arabia’s Vision 2030 economic goals.
The findings come as the Kingdom continues financial sector reforms aimed at increasing household savings and expanding investment opportunities for both Saudi nationals and expatriates.
“Developing robust retirement systems is not just a social imperative, it is a capital markets opportunity,” said Kashif Riaz, Head of BlackRock Riyadh Investment Management and Middle East Financial Advisory.
He added that long-term savings frameworks could mobilise domestic capital, deepen local financial markets and support Saudi Arabia’s economic diversification agenda.
Retirement confidence remains uneven across the workforce
The report found that 75 percent of workers in Saudi Arabia have either started saving or plan to save for retirement. However, only 57 percent regularly save or invest. Moreover, just 24 percent contribute to pensions or dedicated long-term retirement savings plans.
Confidence also differs between Saudis and expatriates.
Around 59 percent of Saudi nationals believe they are financially prepared for retirement. In contrast, only 41 percent of expatriates share the same confidence. Many expatriates continue to rely on personal savings instead of structured pension programmes.
Half of all respondents expect personal savings and investments to fund their retirement. Meanwhile, only 6 percent expect employer-sponsored retirement plans to play a major role. More than one-third of Saudi nationals still expect public pensions to remain an important source of retirement income.
Cash and gold dominate household savings
The report highlights a conservative approach to saving among Saudi residents.
Nearly half of respondents keep their savings in cash. Another 40 percent invest in gold, while only 18 percent own property. As a result, a large share of household wealth remains outside long-term investment assets that can generate sustained returns.
According to BlackRock, redirecting part of these savings into retirement investment products could strengthen individual financial resilience while providing long-term capital for the Saudi economy.
Financial literacy remains a major challenge
Despite strong interest in retirement planning, many workers remain unsure about how to prepare.
Only 21 percent of Saudi nationals said they understand their retirement options with confidence.
The report identified several barriers:
- 36 percent do not know where to access impartial financial guidance.
- 32 percent are unsure how much they should save.
- 26 percent do not understand the retirement products available to them.
Saudi financial analyst Talaat Hafiz said the issue is less about willingness and more about confidence.
“Limited financial literacy, concerns about investment risk and a cultural preference for tangible assets such as real estate and gold continue to discourage many people from investing for the long term,” Hafiz said.
He added that improving financial education and expanding retirement savings products would strengthen retirement preparedness while supporting Vision 2030.
Workplace retirement schemes gain strong support
The study found broad support for employer-sponsored retirement programmes.
Among Saudi nationals, 95 percent said defined-contribution workplace savings plans are appealing. Additionally, 91 percent said they would consider participating.
Workers who already have access to workplace retirement schemes also reported greater confidence about their financial future than those without such programmes.
Hafiz noted that Saudi Arabia already offers more than 360 mutual funds and access to the Saudi stock market. However, he believes voluntary employer-sponsored retirement plans with matching contributions could encourage stronger long-term saving habits.
He also pointed to government initiatives such as GOSI Jameya and the Sah Government Savings Sukuk Programme, which aim to encourage a stronger savings culture among individuals.
Retirement reform can support economic transformation
Hafiz believes retirement reform extends beyond financial security.
“Strengthening the retirement savings system is not solely about enhancing retirement security. It is also about mobilising long-term domestic savings to support economic transformation,” he said.
Countries with mature pension systems often benefit from deeper capital markets and more stable investment flows. Therefore, expanding voluntary retirement savings, improving financial literacy and increasing private-sector participation could deliver long-term benefits for both workers and the wider economy.
As Saudi Arabia advances Vision 2030, retirement reform could become an important tool for improving financial wellbeing while strengthening the Kingdom’s long-term investment landscape.
