Employment and Income Trends Among Older Israelis
Author: Ayal Kimhi, Kyrill Shraberman
November 25, 2013
Demographic forecasts point to a sharp rise in the percentage of older Israelis over the coming years. It is unclear to what extent the country’s social security and pension systems are prepared for this change.
This chapter looks at the changes that occurred in the employment patterns and economic status of Israel’s older adults between 2001 and 2011. The research indicates that the employment rates of people aged 55-64 rose over the course of this decade, particularly among new immigrants. The employment rates of people aged 65-74 rose as well. Per capita income for households headed by older adults increased significantly over the decade, due primarily to a rise in income from work, capital, and pensions. The findings indicate that the rising percentage of older Israelis in the population does not necessarily herald an increase in economic distress within this age group or a heavier burden on the social services. However, more flexibility is needed regarding terms of retirement, to enable those who wish and are able to continue working past the official retirement age. Moreover, an improved safety net should be provided for those who are not able to provide for themselves after retirement.
This paper appears in the Center’s annual publication State of the Nation Report – Society, Economy and Policy 2013.