Saudi Arabia retirement income: a worked example

Invented figures, not official pension rates. Ages are scenario inputs, not eligibility ages. Living or working in Saudi Arabia alone does not establish eligibility for the pension amount used in a scenario.

What does this example show?

With spending of SAR 12,000 a month, an entered pension of SAR 8,000 from age 60, and no investment growth or inflation, the plan needs SAR 2,160,000 at age 55 to last until age 90. Of that, SAR 720,000 covers the period before the pension starts.

Load this example

Prepare the Saudi Arabia inputs

Use a confirmed GOSI or applicable pension estimate to plan a retirement budget in riyals. Keep pension eligibility separate from the savings calculation. GOSI provides a pension calculator for contributors to obtain an approximate retirement benefit based on their information. Confirm the scheme and rules that apply to your record. The dates shown in this independent calculator are illustrative inputs, not a legal retirement age.

Read the country guide and input checklist

Every assumption in the baseline

Current age / stop working: 55 / 55
Plan until age: 90 (exclusive)
Accessible savings at retirement: SAR 2,160,000
Further saving: SAR 0 per month
Spending after tax: SAR 12,000 per month
Entered pension after tax: SAR 8,000 per month, age 60 onward
Other income streams: SAR 0
Net nominal return / inflation: 0% / 0% per year

All figures use today's purchasing power. The pension is an illustrative recurring payment. The model does not assess eligibility, taxes, access restrictions or a benefit increase for claiming later. The example uses zero return to make the arithmetic easy to reproduce; zero is not a return forecast.

Follow the two periods

Age 55 to 60: savings cover all spending.
5 years × 12 months × SAR 12,000 = SAR 720,000.
Age 60 to 90: the pension covers part of spending.
Monthly gap = SAR 12,000 − SAR 8,000 = SAR 4,000. Over 30 years, savings supply SAR 1,440,000.

Total capital needed: SAR 720,000 + SAR 1,440,000 = SAR 2,160,000. At a nonzero return, the calculator discounts each monthly gap. It never borrows against future pension income.

Change one assumption

Same starting savings and spending, different timing · SAR
Scenario	Capital needed	Additional capital needed	Try it
Baseline bridge	SAR 2,160,000	SAR 0	Load scenario
Pension starts one year later	SAR 2,256,000	SAR 96,000	Load scenario
Plan for five more years	SAR 2,400,000	SAR 240,000	Load scenario

Delaying the same pension by one year increases the required savings by SAR 96,000. Planning five years longer adds SAR 240,000. Actual later-claiming benefits may differ: get a new official estimate before using a real alternative date.

What this leaves out

A recurring pension and a lump-sum employment benefit should not be entered in the same way. Only count a lump sum as capital when it is available. This tool does not calculate employment benefits or determine which pension coverage applies to a resident.

The result is a deterministic illustration with no market volatility, changing taxes, care-cost shock or inheritance target. Payments remain constant in real terms, which may overstate a pension that does not keep pace with prices. Three income streams are available; combine payments only when their dates and money basis match.

The first twelve-month budget in the calculator solves for a fundable spending level. It is a separate result from your entered target. In a stressed scenario it can be lower than the target; the capital-gap table above keeps the original spending target unchanged.

Official sources and review scope

GOSI · Pension Calculator ↗

Source descriptions checked 4 October 2026. This is an illustrative calculation, not a government benefit forecast. Read our editorial policy and review status.

Start with the calculator's default inputs · Calculation method · Report a correction