AMMAN — The Social Security Corporation (SSC) is in a strong and stable financial position and remains capable of meeting all its obligations to contributors and retirees, according to the findings of its eleventh actuarial study released on Saturday.

 

Conducted every three years under Article 18 of the Social Security Law, the study assessed the corporation’s financial health and the long-term sustainability of its insurance programmes, based on subscription revenues, investment returns and accumulated assets.

 

The study projected that the first breakeven point, when subscription revenues equal insurance expenditures, will occur in 2030. A delayed breakeven point is considered a positive indicator of financial stability and long-term sustainability.

 

The second breakeven point is expected in 2038, when insurance revenues and investment returns may become insufficient to cover expenditures if investment performance does not improve, the corporation said, according to the Jordan News Agency, Petra.

 

Rising costs linked to early retirement have increased spending on old-age, disability and death insurance. Early retirees currently account for 64 per cent of all pensioners and receive 61 per cent of the total pension bill.

 

The SSC stressed the importance of combating social security evasion in the formal sector and expanding coverage to workers in the informal economy, describing the issue as a national priority. The study found that about 22.8 per cent of workers in Jordan’s regulated labour market remain outside the social security system.

 

The corporation said the findings underscore the need to amend the Social Security Law to extend breakeven points, strengthen the sustainability of the insurance system, promote social justice and protect the rights of future generations.

 

A series of national dialogues involving relevant stakeholders and experts will be held under the Economic and Social Council to discuss proposed legislative reforms. The discussions will focus on three main principles: ensuring the financial sustainability of the SSC, improving conditions for retirees with low pensions, and safeguarding existing benefits for insured contributors.

 

The SSC reaffirmed its commitment to transparency in reporting actuarial and financial indicators, protecting long-serving contributors and implementing reforms in line with Jordan’s demographic and economic trends to ensure a balanced and sustainable social security system.