RIYADH: Saudi Arabia ranked first among Gulf Cooperation Council states and 12th globally among 55 pension systems in the 2026 Marsh CFA Institute Global Pension Index, with its overall score rising to 73.2 out of 100 from 67.6 in 2025.
The Kingdom has advanced 15 places since 2022, moving from 27th among 44 systems to 12th in this year's assessment, according to the Saudi Press Agency.
Saudi Arabia improved across all three pillars of the index: adequacy, sustainability and integrity. Its integrity score rose 9.3 points to 83.5, earning an A rating in that category, the highest classification. Its sustainability score increased to 61.2 from 54.6, while its adequacy score climbed to 77.2 from 75. The overall system retained a B grade.
With a score of 73.2, Saudi Arabia outperformed several established pension systems that also received an overall B grade, including the UK, Canada, France, Germany, Belgium, Ireland and Hong Kong, while leading all participating Gulf nations.
The SPA report attributed the Kingdom’s progress to governance reforms, regulatory enhancements, data modernization and stronger safeguards for pension-scheme beneficiaries.
The results come as Saudi Arabia continues to modernize its social insurance system through the General Organization for Social Insurance, with reforms aimed at improving retirement benefits and strengthening the system's long-term sustainability.
Published in collaboration with the Monash Centre for Financial Studies, the 18th edition of the Marsh CFA Institute Global Pension Index assesses 55 retirement income systems using more than 50 indicators. The systems covered account for approximately 66 percent of the world's population.
A BlackRock study published in June highlighted opportunities to expand retirement savings in Saudi Arabia and channel more household savings into long-term investments, potentially deepening financial markets and supporting economic diversification.
The findings come as the Kingdom implements pension reforms approved in 2024. The new Social Insurance Law, which took effect on July 3, 2024, introduced a retirement age of 65 for eligible new workforce entrants and changes to early-retirement eligibility. The new law applies to people entering the workforce without previous contribution periods under the existing civil pension or social insurance systems, while specified changes also affect certain existing contributors.