Israel's Pension System Ranks Among World's Top Five for Seventh Consecutive Year
Translated & summarized from Maariv by baba
Israel's pension system has been ranked among the world's top five for the seventh consecutive year, achieving an 'A' rating and a score of 81.9 in the 2026 Pension Index. The index, which now covers 55 countries, evaluates pension systems on adequacy, sustainability, and integrity. However, the report noted a potential risk to the retirement savings of young parents, especially women on maternity leave, due to interruptions in pension accumulation.
The story in 5 lines · by baba
- Israel's pension system ranked in the world's top five for the seventh straight year.
- The system received an 'A' rating and a score of 81.9 in the 2026 Pension Index.
- The index evaluated 55 countries based on adequacy, sustainability, and integrity.
- The report highlighted potential harm to young parents' savings, particularly women on maternity leave.
- Interruptions in pension accumulation could negatively affect retirement savings.
For the seventh year in a row, Israel's pension system has been ranked among the top five globally, according to the 2026 Pension Index. The system achieved a score of 81.9 and the highest possible rating, 'A'. This year's index included 55 countries, an increase from 52 in 2025. Israel joined the index in 2020 when it covered 39 nations, and has consistently placed in the top five since.
The index evaluates pension systems based on over 50 indicators across three main areas: Adequacy, which assesses savers' situations and the system's ability to provide a livable pension; Sustainability, focusing on long-term functionality considering demographic factors; and Integrity, examining supervision quality, transparency, and regulation. The final score is a weighted average of these three domains. An 'A' rating signifies a stable, sustainable pension system with a high level of integrity.
While acknowledging the high ranking, the report also highlights areas for improvement. Specifically, it points to a potential negative impact on the savings of young parents, particularly women on maternity leave. The report suggests a need to emphasize assistance for savers during periods when pension rights are not being accumulated, as interruptions in this accumulation can harm their retirement savings. In Israel, the Capital Markets Authority is responsible for supervising the pension system.