Israel Faces High Rate of Elderly Working Due to Financial Need
Translated & summarized from Makor Rishon by baba
In 2024, nearly 40,000 Israelis aged 75 and older were in the workforce, highlighting a high rate of elderly employment driven by financial necessity. Many seniors lack adequate pensions due to historical contribution gaps, forcing them to work in demanding jobs. Experts suggest increasing old-age pensions to provide consistent support for those most in need, ensuring a dignified retirement.
The story in 5 lines · by baba
- Nearly 40,000 Israelis aged 75+ were in the workforce in 2024, indicating potential financial need.
- Israel has a higher rate of elderly workers compared to the OECD average.
- Half of Israel's seniors have no pension or a very low one, forcing them to work.
- Former Minister Yaakov Margi called for raising old-age pensions due to widespread senior poverty.
- Advocates urge increased pensions for those with insufficient retirement savings.
In 2024, 39,800 Israelis aged 75 and older were part of the labor force, a figure that raises concerns about whether they are working by choice or necessity. While work can provide meaning and social connection for older adults, the high participation rate suggests many may still need a salary to survive. Israel stands out internationally for its elderly workforce, with approximately 28% of men and 15% of women over 65 still employed, compared to OECD averages of 21% and 11% respectively.
This situation is largely attributed to the income structure of Israel's senior citizens. About half of older Israelis have no pension or a very low one, as mandatory pension contributions only began in 2008. Many reached retirement age without adequate savings and rely heavily on old-age pensions and additional income.
The consequences are visible in jobs like driving, security, cleaning, and factory work, often physically demanding roles. The article criticizes the public's attention to the financial struggles of the elderly, which is often limited to Holocaust Remembrance Day or International Day of Older Persons, while the daily reality of hardship persists.
To address this, the article advocates for increasing the old-age pension for those with little or no pension income. This would provide consistent support to those most in need, helping to bridge the gap created by decades without sufficient pension savings. The issue should be a priority for the next government, with some parties already including pension increases in their platforms.
Former Minister of Welfare Yaakov Margi has called for advancing a proposal to raise and link old-age pensions to the average wage, noting that one in eight seniors experiences poverty and must choose between food and medicine.
