MUSCAT : Speaking at the Forum, His Excellency Salim bin Nasser al Aufi, Minister of Energy and Minerals and Chairman of the Board of Directors of the Social Protection Fund (SFPF), underscored the importance of carefully studying the impact of setting the retirement age, whether early or regular, on the financial sustainability of the Fund.

He explained that high benefits versus low contributions can lead to a financial deficit in the future. Any decision regarding the retirement age must be based on accurate scientific studies that take into account the sustainability of the fund, he explained, pointing out that there are currently insufficient studies to definitively determine the appropriate age.

It is necessary to balance decisions so that they do not lead to a significant increase in employee contributions, he stressed.

He also noted that a reduction in the retirement age would increase the contributions required from subscribers, as a longer retirement period would result in greater entitlements. The longer the retirement period, the greater his entitlements, he pointed out.

“If his contribution is small and his dues are more, this means that the other shareholders must cover these dues. Before we decide that 30, 25 or 35 years must be studied to determine its impact on the sustainability of the fund. If the retirement age is early, it means more contributions to cover the pensioner’s obligations,” he explained.

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