Pensions, Poverty, and the Elderly in Israel
Author: Liora Bowers
January 22, 2014
Given the extreme levels of poverty that would afflict the elderly without any societal help, governments worldwide play an active and important role in ensuring a minimum standard of living for the retired in their societies.
Welfare and social security policies eliminate almost 90% of elderly poverty in the vast majority of countries examined, but have much less of an impact in Israel. This brief examines this surprising dichotomy: why do Israel’s elderly have the second lowest poverty rates in terms of market income, but the highest poverty rates in terms of disposable income relative to the 21 OECD countries?