Kuwait’s Public Institution for Social Security has introduced a new requirement for retirees wishing to transfer their pension payments between banks. Retirees must now obtain a clearance certificate from their current bank before switching, ensuring that any existing pension‑backed loans are settled and banks retain security over guaranteed payments.
The step aims to reduce default risks and strengthen banks’ confidence in lending to retirees, potentially leading to higher age limits and larger loan amounts for qualified pensioners. With the number of retirees rising, the change is expected to balance retirees’ access to credit with the financial stability of lending institutions.
