'Sustainable pensions are a key challenge'

MANAMA: Countries in the region are faced with a key challenge – to improve pensions, enhance their sustainability and contribute to economic growth and security at a time of key socio-economic change, according to Supreme Council for Health president Lieutenant General Dr Shaikh Mohammed bin Abdulla Al Khalifa.

Dr Shaikh Mohammed, who is also chairman of the Al Hekma Society for the Retired, told the third Annual Middle East and North Africa (Mena) Pensions Conference at the Four Seasons Hotel Bahrain Bay that there is an urgency to build awareness of the need for retirement planning for society and region.

“As Bahrain started seriously to address the issue of pension fund sustainability this year, His Majesty King Hamad emphasised the need to attach absolute importance to the issue of pension through improving the situation of the funds and enhancing the services they deliver to retirees and affiliates, in a manner that takes the public interests into consideration, ensures the sustainability of pension and social insurance funds, and preserves the rights of contributors and retirees,” he added.

Calling on the pensions industry to rise to the challenge, Dr Shaikh Mohammed said, “Yours is an industry that has a special responsibility, because people depend on you to help them save and plan for old age.

“And it’s a responsibility that will only grow in the years ahead. People are living longer; they’re having fewer children. Life expectancy is expected to continue increasing. The ratio of retired people to workers is set to double in the next three decades.

“Public finances are going to remain under pressure. All of this has implications for our economies.”

The challenge to develop better and more sustainable pension solutions for citizens and employees, is also an opportunity, he added.

“The need to retire in comfort and security is universal. In this respect, the goals of the GCC and Mena region are the same as the goals in other countries.

“For this reason, we need to learn from the successes – and even the failures – of others.

“In this region, we take pride in caring for the needs of our society. We strive to provide dignity in retirement for all our citizens,” said the expert.

Organised by Takaud, a Bahrain-based specialist provider of pension, savings and investment solutions, the conference was held under the patronage of the Central Bank of Bahrain.

More than 30 expert speakers addressed the conference, which drew 500 participants from the Gulf region and the rest of the Arab countries, including social security institutions, the private retirement sector, HR benefits specialists, asset management firms, insurance companies, financial services institutions, economic planning departments, audit firms and others interested in the social protection aspects.

Takaud’s chief government business and communications officer and chairman of the conference Ebrahim K Ebrahim said the annual regional gathering of the pension industry seeks to promote the establishment of a progressive pension sector, provide more ideas and solutions for both personal and corporate retirement schemes, and create more integrated and sustainable pension systems for the retirement of both citizens and residents of the region.

Source: http://www.gdnonline.com/Details/428987/Sustainable-pensions-are-a-key-challenge

 

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