State Comptroller Warns National Insurance Fund Could Run Dry by 2035

State Comptroller Matanyahu Englman said that loose approval of long-term care benefits, without actuarial review and without a single government discussion since 2018, has doubled the number of eligible recipients and tripled annual spending. According to his report on Israel’s preparations for population aging, those changes are bringing the National Insurance Institute toward a cash-flow collapse as early as 2035.

That date is nine years earlier than what officials had recently expected. The report says the issue was not brought by the prime minister for government discussion even once in the past eight years.

Englman’s warning appears in a broader report examining how Israel is preparing for an aging population, but the immediate concern is the financial sustainability of the National Insurance Institute and its ability to keep funding benefits at the current pace.