As Israelis live longer, older Arabs, single women, lag behind on financial security

Israelis are living longer than before, but a new study published Wednesday shows that the benefits of rising longevity in Israel are not equally shared.

In fifth place, behind Japan, Spain, South Korea, and Switzerland, Israel has one of the highest life expectancies in the OECD — 85.7 years for women and 81.7 years for men, according to 2023 data.

Some 1.2 million Israelis are aged 65 and over.

But, as the Shoresh Institution for Socioeconomic Research points out, it is
precisely because lives are getting longer that the economic challenge is intensifying.

“Longer lives increase dependence on pensions, savings, and continued employment, and those who reach age 65 without a solid financial foundation struggle to meet the high cost of living in old age,” said the report.

The study found that 35 percent of Jewish men, but just 20% of Arab men, continue to work beyond the age of 65. Around a fifth of Jewish women are still working beyond age 65, but the figure for their Arab peers is between 1% and 3%.

In general, over 70% of working Israeli men over 65 are employed full-time, which is higher than the OECD average of around 67%. Some 40% of women still working after age 65 (almost exclusively Jewish) have full-time jobs, which is below the OECD average of 50%. Most Jewish Israeli women who continue in employment do so part-time, the study says.

The research shows that education plays a key role in employment in this age group. While over 40% of men with 13 or more years of schooling still work, only a fifth of those with only primary education continue to have jobs. Similar gaps apply to women.

Prof. Ayal Kimhi, vice president of the Shoresh Institution, told The Times of Israel that it was not possible to say whether stronger workers, particularly those with higher education, were working out of choice rather than necessity.

Monthly combined income among couples aged 65+ has risen to an average of over NIS 18,000 ($5,560) before tax, the report said.

But the monthly income of a single man is around NIS 8,000 ($2,470), while for single women, it is NIS 7,000 ($2,160).

The Shoresh Institution study called for deep structural adjustments in Israel’s economic policies for the aging population. These, it said, should include full indexation of old-age and income-supplement benefits, proactive moves to help people exercise their social rights, a stronger safety net to protect pensions, and targeted support for the most vulnerable groups — single older women, Arab households, and those with low levels of education.

In addition, the study, based on data from the OECD and Israel’s Central Bureau of Statistics, recommended high-quality, age-appropriate employment opportunities for adults aged 65+.

Kimhi, who worked on the research together with Tomer Siedner, said, “Our findings clearly identify two groups entering the golden years at a significant disadvantage: single older women and Arab citizens.”

“These gaps do not emerge at age 65. They accumulate throughout life. Addressing them requires more than… focusing just on the retirement age. It requires strengthening education, employment, and pension savings much earlier. If we do not act now, inequality in the golden years will only grow in the next generation,” he said.