Saudi Arabia has an opportunity to strengthen long-term retirement savings as it advances economic reforms under Vision 2030, with expanded defined-contribution retirement schemes potentially improving retirement outcomes while unlocking domestic capital for long-term investment, said a report by BlackRock, the world's largest asset manager.

As economies across the region undergo profound transformation, the Read on Retirement: GCC 2026 study highlights that strengthening retirement systems can play a dual role: improving individual outcomes while mobilising domestic savings to support deeper capital markets and long-term economic resilience.

According to the report, the Middle East is at a pivotal stage in retirement planning, with strong confidence in current financial circumstances contrasting with lower levels of long-term retirement preparedness.

Saudi Arabia, it stated, has a clear opportunity to build more resilient long-term savings systems as the kingdom undergoes broader economic and social reforms under Vision 2030, creating both a challenge and a significant opportunity.

According to the BlackRock study, expanding funded defined-contribution retirement schemes, including voluntary workplace savings plans, could help improve retirement outcomes while increasing the pool of domestic capital available for long-term investment.

Such schemes could support the development of Saudi Arabia's capital markets by directing household savings into long-term investments, contributing to economic diversification and broader participation in financial markets, it stated.

"Developing robust retirement systems is not just a social imperative, it is a capital markets opportunity," said Kashif Riaz, Head of BlackRock Riyadh Investment Management and Middle East Financial Advisory.

Funded savings frameworks could help mobilise domestic capital, deepen local financial markets and support the kingdom's economic diversification objectives.

The report found that Saudi households continue to hold a large share of their savings in cash, gold and property. About 49% of respondents reported holding cash, 40% held gold and 18% invested in property.

While 75% of respondents said they had started saving or planning for retirement, only 57% said they regularly save or invest and 24% contribute to pension or long-term savings plans.

The study highlighted differences in retirement preparedness between Saudi nationals and expatriates. Some 59% of Saudi nationals said they felt prepared for retirement, compared with 41% of expatriates.

According to BlackRock, the gap reflects greater access among nationals to public pension arrangements, while expatriates often rely on personal savings or less structured workplace benefits.

More than a third of Saudi nationals, or 36%, expect to rely on public pensions during retirement, while only 6% of respondents across the region expect employer-sponsored retirement schemes to be a primary source of retirement income.

The report said stronger workplace and individual retirement savings plans could complement, rather than replace, the public pension system by broadening retirement coverage and improving financial resilience.

The survey also found that retirement saving is not a leading financial priority for many Saudi nationals, with only 19% ranking it among their top three financial priorities. Among expatriates, retirement saving ranked first, cited by 30% of respondents.

Respondents identified a lack of information and guidance as key barriers to retirement planning. Around 36% said they did not know where to obtain unbiased information, 32% were unsure how much they should save and 26% said they were unclear about the retirement savings options available to them.

At the same time, 92% said they would save more for retirement if better incentives were available.

The report by BlackRock found strong support for workplace defined-contribution pension schemes. Among Saudi nationals, 95% said such schemes were appealing and 91% said they would consider participating, it statesd.

Retirement preparedness was also higher among workers with access to workplace retirement plans. Among Saudi nationals, 78% of those with a workplace scheme said they felt prepared for retirement, compared with 58% of those without one. Among expatriates, the figures were 82% and 39%, respectively, he added.