Israeli Parties Propose Pension Increases Ahead of Elections
Translated & summarized from Cursorinfo by baba
Israeli political parties are proposing significant increases to old-age pensions, with some aiming for payments up to 25% of the average wage. These proposals were presented at a conference by the Histadrut Pensioners Federation, which represents 1.3 million retirees. Key proposals include an initial 1,000 shekel increase and linking pensions to average wages or inflation. However, the National Insurance Institute faces a substantial deficit, raising concerns about the long-term financial sustainability of such increases.
The story in 6 lines · by baba
- Israeli political parties propose raising old-age pensions to 25% of the average national wage.
- The Histadrut Pensioners Federation, representing 1.3 million retirees, is demanding concrete commitments from politicians.
- One proposal suggests an initial 1,000 shekel increase, with gradual rises thereafter.
- The National Insurance Institute faces an estimated deficit of 810 billion shekels.
- Several major parties have not yet presented specific pension increase plans.
- Discussions also included long-term care and combating elderly loneliness.
Several Israeli political parties have put forward proposals to significantly increase old-age pensions, with some suggesting hikes of up to 25% of the average national wage. These proposals emerged at a pre-election conference hosted by the Histadrut Pensioners Federation in Tel Aviv, where attendees demanded concrete commitments from politicians to improve the financial situation of elderly citizens and ensure the sustainability of the pension system. Shmuel Mizrahi, Chairman of the Pensioners Federation, stated that his organization represents 1.3 million pensioners and that the issues faced by the elderly should be a top priority for the next government, as current payments are often insufficient to cover daily expenses.
Knesset Member Gilad Kariv of the "Democrats" party supported raising pensions to 25% of the average salary, advocating for a gradual increase and linking payments to the average wage to keep pace with income growth. He also called for strengthening the National Insurance Institute's financial standing. Yael Benvenisti, representing the "Our Home Israel" party, proposed an initial increase of 1,000 shekels, followed by a gradual rise to 25% of the average wage. Her party also suggested revising the indexation mechanism to adjust pensions based on the higher of average wage growth or consumer price index increases, protecting pensioners from inflation and wage stagnation.
Other parties, including "Meretz" and "Yashar," also expressed support for increasing pensions, though specific details were not provided. However, several parties, including "Likud," "Shas," "United Torah Judaism," "Religious Zionism," and "Otzma Yehudit," have not yet presented concrete pension plans to the Pensioners Federation. The federation is seeking public and verifiable promises from all parties before the next government is formed.
Beyond pension amounts, discussions also covered long-term care insurance and combating loneliness among the elderly. The feasibility of these pension increases is challenged by the National Insurance Institute's significant financial difficulties, with estimates of its long-term deficit reaching approximately 810 billion shekels and projections of its reserve fund depletion around 2035. Potential future initiatives, such as changes to eligibility or restrictions for those who avoid military service, are being discussed but are not yet finalized decisions.
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