Retirement Age Year of Retirement

Group Country Future Outlook

Implementation System
Men Women
1) Rising
inflation

2) Education
 Social
1 Oman  60 60 2013 3) Household
Security
net worth

4) Trend in
household
wealth

1) Population
aging
 Social
2) Household
Pakistan  62  62 2012 security,
net worth
PPF, VPS
3) Financial
wealth

Oman is the country popular with expensive cost of living. Until now expatriates
says workers in Oman are struggling hard save money to create a fund for themselves
as daily uses and future uses, despite getting low payment. Eventhough those who
working for years until their retirement years still did not have enough saving in their
bank for retirement.
In Oman, working limit for both men and women only at 60 years old. It had
been implemented since 2013. Oman in retirement system apply social security which
is once the employee has reach the age of their retirement, they will be entitled into a
pension. However, they need to contribute the social security at least 120 to 180
months consistently. The pension fund cover the disability benefits such as work
accidents. This system also covers all citizens of Oman either employed in sector
under permanet work agreement or Oman citizens who working under one of ther
Gulf Cooperation Council countries (Bahrain, Kuwait, Qatar, Saudi Arabia, United
Arab Emirates).
Funds are contribute by the worker itself and the employer with propotions:
(i) Insured person: 6.5% of monthly basic salary
(ii) Employer: 9.5% of monthly basic salary. The minimum monthly earnings used to
calculate contributions are 120 rials (approximately USD 310) for citizens working in
Oman and 200 (approximately USD 520) rials for citizens working abroad. The
maximum monthly earnings used to calculate contributions for citizens working in
Oman are 3,000 rials (approximately USD 7800) and 1,000 rials (approximately USD
2600) for citizens working abroad.
(iii) Further, the government contributes 2% of monthly basic salary.
Those Oman citizen who working always worried of their cost of living due to having
inflation. Due to the inflation, its affect most of the factor of living such as household
expense, education.
“Inflation also takes a big bite away from the pay packages of expatriates. In the last
five years, inflation in Oman has been rising steadily at 1.75 per cent annually.”-
Times of Oman
The eager of keep follow and update the trend which is more to wants than need like
upgrade to a new car, also contribute to the reason of insufficient money. So, most of
Omani future outlook in saving their pension are to support the education and to
afford pay the household bills during their retirement.
As for Pakistan country, age for retirement come to limit when they reach 62
years old, both for men and women. It had been implement since 2013 by the
government itself. In Pakistan, most working sector already provided pension scheme
for each sector so it become more organized. Pension scheme was reform to give
benefits and fragmented nature of the working sector.
In Pakistan, the workers are protected by social security pension scheme. The
same things applies to Pakistan, social security needs few percent of the workers’
wage to contribute into the pension fund. But, when they reach their retirement age,
the pension fund will automatically entitle to them. So, it will be useful to use and
support during their pension years.
Besides social security, Pakistan also have Pakistan Pension Fund (PPF) which is
under Voluntary Pension System (VPS). It was launched on 29th June 2007. PPF is
actually a saving fund cum investment plan under VPS which provide those Pakistani
who work for their nationals a systematic way for their retirement years.
VPS is actually a saving cum investment for vehicle to provide better framework
of life after retirement. This fund established by employer to arrange their employees’
retirement funds. Both employer and employee’s wage will be deducted into this
scheme.
As for the future outlook, same goes to Pakistan since they have quite big
population and many persons in one household to be responsible on, they focus more
on population aging. So, because of the situation in rising poverty in Pakistan citizens,
it have been expected that older people tend to face more difficulties in life than
young people. That is the reason why it become important policy of future outlook to
amend in social security or any pension scheme.
As due to rising in poverty in Pakistan, with the rising of household networth
problem also increase all the along with the inflation. So, its quite challenging if they
face premature death.
Third future outlook for Pakistan, they put focus in wealth financing. The rising
in inflation, increase the expenditure of household. So, it becoem the burden for
public pension scheme because they need to contribute few percent of their wages
into the pension scheme despite having insufficient financial wealth especially for
those who have big family.
 REFERENCES
 https://www.mcbah.com/pension-products/pakistan-pension-fund/
 https://www.urban.org/sites/default/files/publication/97391/the_retirement_outlo
ok_for_millennials_1.pdf
 https://www.nap.edu/read/5367/chapter/8
 https://www.internations.org/oman-expats/guide/working-in-oman-15748/oman-
pension-tax-working-conditions-3
 https://www.omanobserver.om/retirement-whats-next/
 https://timesofoman.com/article/65685/Oman/Why-dont-expatriates-living-in-
the-Sultanate-of-Oman-save-enough-money-for-retirement
 https://oxfordbusinessgroup.com/overview/rounded-progress-economic-
conditions-are-looking-favourable-2019-thanks-improving-oil-prices-and