Two-thirds of Elderly Israelis are Financially Content

A recent survey published in Israel Hayom finds that 62 percent of Israeli citizens over the age of 65 are happy with their financial situation.

According to a Central Bureau of Statistics (CBS) study, two-thirds of elderly Israeli citizens are satisfied with their financial situation. These findings are significant since senior citizens comprise 10.4 percent of the Israeli population, with nearly half the elderly population residing in central Israel and the Tel Aviv area specifically. The survey forecasts that by 2035, the number of senior citizens will double to 1.66 million, representing 14.6% of the general population.

Israeli law mandates that every employer must pay for employees’ pensions after only six months of work, so that when workers become elderly they can enjoy a secure financial existence. The minimum contribution by the employee is 1.66 percent of the gross (bruto) salary, while the employer must contribute a total of 3.33 percent. The employee’s portion goes toward the pension plan exclusively.

Of the employer’s 3.33 percent, 1.66 percent is designated for the employee’s pension while 1.67 percent does toward pitzuim, which is severance pay that Israeli law entitles fired employees to receive at the rate of one month’s salary for each year of work. Employers that don’t pay their employees’ pensions, even with employee consent, can be sued. Employers can even be sued for not paying employees’ pensions upon request.

The majority of male Israelis have pension funds, according to the CBS survey. While 63 percent of elderly Israeli women don’t have pensions, this is often the result of a decision not to enter the workforce in order to raise children. In these cases, 39 percent of the women polled stated that they are supported by their spouse’s pension.

As its employment and retirement laws demonstrate, Israeli society very much cares for and respects elderly citizens. On public buses, for example, the front seats are always reserved for elderly passengers and young people are frequently seen giving up their seats. Israeli society demonstrates that providing the elderly with financial stability and respect bears remarkable fruit for younger citizens, who benefit from the advice, wisdom, and experience that their cherished elder population offers.

By Rachel Avraham, staff writer for United With Israel

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