New policy allows individuals aged 65 and above to use pension funds for Hajj slots

New regulations have come into effect on Thursday following an amendment to the Pension Act, allowing individuals aged over 65 to use their Retirement Savings Accounts to finance Hajj pilgrimage.

Previously, individuals aged 65 and above, or those who reached the age of 65 by the time their Hajj slot was confirmed, were not eligible to use their retirement savings to secure a place for the pilgrimage. The amendment now allows eligible members of any age to access these funds to perform Hajj.

According to the Pension Office, members must meet two conditions to qualify for the scheme: they must not have previously performed the mandatory Hajj and must maintain a minimum balance of MVR 336,000 in their Retirement Savings Account (RSA). For members who have pledged their pension savings as collateral for housing, the required balance of MVR 336,000 must remain after deducting the collateralised amount.

Members seeking to use this facility must first pay 20 percent of the Hajj package cost to the Maldives Hajj Corporation. Once they submit a request to the Pension Office to access the remaining amount, a Hajj slot will be reserved according to the established priority order. The Pension Office clarified that the funds will not be withdrawn immediately and will remain invested until the final transfer is made to the Hajj Corporation.

The Pension Office also noted that for members already receiving pensions under the Maldives Retirement Pension Scheme (MRPS), as well as those who are newly retiring, the amount reserved for Hajj will be excluded when calculating their monthly pension payments. As a result, using the Hajj facility may reduce their monthly pension. However, if the Hajj reservation is cancelled and the funds are returned to the RSA, the monthly pension will be recalculated to include the returned amount.

Meanwhile, Islamic Minister Dr. Mohamed Shaheem Ali Saeed announced last month that 324 individuals aged over 70, who have been on the Hajj waiting list for more than three years, will be sent for the pilgrimage next year. The Ministry noted that while this decision could delay the Hajj arrangements of some individuals under 65 by approximately a year, it offers renewed hope to elderly citizens who have waited many years to perform the pilgrimage.

Concerns over the lengthy Hajj waiting list continue to grow, with the Saudi government currently allocating an annual quota of 1,000 pilgrims for the Maldives.