Israel Sees High Employment Rates Among Seniors Over 70, Driven by Experience and Economic Factors

Israel has nearly 5 million employed individuals, with significant variation in employment patterns among older workers. According to data from the Shoresh Institute, about 28% of men and 15% of women over 65 remain employed, rates notably higher than the OECD averages of 21% and 11%, respectively. This trend is influenced by Israel's high life expectancy, cost of living, and gaps in pension savings among older generations.

New data from Hilan Value, analyzing tens of thousands of employees in large companies, reveals that most older workers are experienced veterans, predominantly men, working in sectors such as security, education, and transportation. Over 58% of men continue working past age 70, compared to 29% of women, despite women having a slightly higher life expectancy. Many older workers have long tenure, with 70% having over ten years at their current job, indicating comfort and a desire to contribute their expertise rather than seeking new employment challenges.

Sectoral differences are stark: 31% of workers aged 35 and above in security, caregiving, and personnel services are 65 or older, the highest among industries. Education and academia follow with 16%, while the high-tech sector has only 4% of employees aged 65 and older. Although high-tech is traditionally seen as a young industry, it is gradually aging.

Professor Asaf Avrahami, CEO of Hilan Value, states that the debate over retirement age is becoming less relevant. Instead, organizations should focus on leveraging the valuable experience of older employees, who are rarely dismissed and often retire naturally. He emphasizes that older workers are an asset, especially as recruiting quality employees becomes more challenging. Avrahami also notes that artificial intelligence could extend the careers of experienced workers by enhancing productivity and decision-making, turning experience into a strategic advantage rather than a burden.