Russian-Speaking Israelis Face Significantly Lower Pensions Than Average
Translated & summarized from NEWSru Israel by baba
Russian-speaking immigrants in Israel receive significantly lower pensions, averaging 2,700-3,000 shekels monthly compared to the national average of 8,184 shekels for men, according to Eldar Portnov of BestSeller insurance agency. Factors include late pension insurance laws, initial low salaries, and a lack of awareness about pension rights. Portnov's agency is educating immigrants to help them secure their entitled retirement savings.
The story in 5 lines · by baba
- Russian-speaking immigrants in Israel receive average pensions of 2,700-3,000 shekels, far below the national average.
- The national average pension for non-working men is 8,184 shekels, and 5,481 shekels for women.
- Lack of awareness about pension rights and financial systems is a key reason for lower immigrant pensions.
- Mandatory pension insurance in Israel was only introduced in 2008, impacting older immigrants.
- BestSeller insurance agency is actively educating immigrants on their pension entitlements.
The Central Bureau of Statistics in Israel reported that the average monthly pension for non-working men receiving professional pensions is 8,184 shekels, while for women it is 5,481 shekels. Eldar Portnov, owner of the BestSeller insurance agency, highlighted that this disparity is often even greater for Russian-speaking immigrants, whose average pension, based on his agency's data from over 10,000 clients, is only 2,700-3,000 shekels per month. This group includes professionals like doctors and engineers, not just low-wage earners.
Portnov attributes the lower pensions to several factors, including the late introduction of mandatory pension insurance in 2008, lower salaries during early years of immigration, gaps in employment history, and poorly structured pension plans. A significant, often underestimated, reason is the lack of awareness among immigrants about their rights regarding pension funds, employer contributions, tax benefits, and National Insurance (Bituah Leumi) entitlements, especially given language barriers and the initial focus on settling and supporting a family.
He emphasized that the value of time in investments means that starting early and contributing regularly is crucial. Each year without proper contributions, premature withdrawal of severance pay (pitzuim), or uncorrected errors can lead to substantial losses in future savings. Russian-speaking immigrants are often at a disadvantage not due to fewer rights, but due to the difficulty in understanding and exercising those rights.
To address this, BestSeller has been actively educating the public through media, webinars, social media, and YouTube, explaining complex financial mechanisms in simple terms. Portnov believes that individuals should not lose their retirement savings due to a lack of information and that 30 years of honest work in Israel should afford a dignified retirement. The agency encourages people to check their pension rights to avoid lifelong financial consequences.
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