Many Israeli Seniors Forced to Work Due to Insufficient Pension Savings
Ya'ir Kaplan, a 70-year-old widower and independent tax consultant from Herzliya, exemplifies the financial struggles faced by many Israeli seniors who must continue working due to low monthly incomes. Despite the desire to retire and enjoy their later years, hundreds of thousands of elderly Israelis work out of necessity, unable to realize their retirement dreams.
Since the mandatory pension law took effect in January 2008, about one million workers gained pension coverage, but those over 67 today often lack sufficient pension savings because they worked many years without contributions. Israel's pension system is based on accumulated savings, so low early-career wages or employment gaps result in inadequate retirement funds. Additionally, Israeli seniors receive old-age benefits from the National Insurance Institute, with minimum payments of 1,838 shekels monthly at age 70, rising to 1,941 shekels at age 80.
Rona Hadida, 74, and her husband, a 100% disabled engineer, live in rented housing in Hadera and struggle despite combined pensions and social security totaling around 12,500 shekels monthly. She works part-time to supplement their income, fearing the day she can no longer work. Similarly, Goldie Rot Saban, 69, a divorced office manager in Ramat Gan, relies on a small pension and rental income but worries about the future as she ages.
Financial planner Avi Gasner explains that maintaining a decent post-retirement lifestyle typically requires 60%-70% of one’s final salary in pension income. He advises saving at least 20% of net income and investing in private health insurance to cover rising medical costs. Advocates like Yekutiel Meshi of the 121 Association call for a differentiated old-age pension that raises benefits for those without or with low pensions, pegged to minimum wages and average salaries to prevent erosion.
With nearly half of Israeli seniors lacking adequate pensions, many continue working out of economic necessity rather than choice. The goal is to enable all elderly citizens to live with dignity and make retirement a voluntary decision, not a financial compulsion.
