Gulf Migrants Faced Retirement Savings Challenges
Ageing workers in Gulf countries often lack pension coverage, shifting the financial burden to their children.
Updated on Sept. 21, 2026 in Retirement Planning
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A new International Labour Organisation study highlights that many ageing Indian migrants in Gulf Cooperation Council countries face significant financial insecurity. Because mandatory retirement savings systems from their home country do not apply to their work abroad, many long-term residents must rely on family support.
Why it matters
The lack of pension portability for these migrants means that retirement funding is no longer guaranteed by the state, forcing households to re-evaluate their long-term financial planning. As traditional models of returning to India shift toward long-term settlement, the cost of healthcare and elder care has become a growing concern for these families.
Non-nationals comprise nearly half of the population aged 75 and older in Qatar and one-third of the elderly population in Kuwait. These figures highlight the large population of ageing workers who lack coverage from India's Employees' Provident Fund Organisation.
The players
International Labour Organisation
A United Nations agency that promotes international labor rights and tracks global employment and social protection standards.
Employees' Provident Fund Organisation
A primary Indian government agency that oversees mandatory retirement savings accounts for formal sector employees.
The details
Many migrants who moved to Gulf countries during the oil boom of the 1970s and 1980s now face a retirement landscape without formal, mandatory pension benefits. Consequently, second-generation migrants are increasingly providing the primary financial support for their retired parents. The study suggests that without new state-mandated benefits or inclusive residency options, these families may face significant financial strain.
Timeline
1970s and 1980s: Migrants arrived in Gulf countries during the initial oil boom period.
Money Landscape
The study marks a shift from the traditional model of returning to one's home country to a reality of long-term settlement among older migrant populations. This trend challenges existing financial planning frameworks built on the assumption of state-backed pension portability.
Migrant households should evaluate whether they are eligible for alternative end-of-service benefits or private retirement accounts. Families concerned about long-term sustainability should consult with a qualified financial professional to map out potential healthcare and living expenses.
The takeaway
The transition to long-term residency in Gulf countries requires families to proactively plan for elder care costs outside of traditional pension systems. Households should review their current savings contributions and explore how local residency regulations may impact their long-term financial access.
Further reading
For more information on managing cross-border financial security, visit Retirement Planning.
Source note: This article includes information reported by Deccan Herald.
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