Longer Lifespan, Financial Gaps: Israelis, Arabs, and Single Women Struggle

Rising Life Expectancy in Israel: A Tale of Two Groups

Israel has long been recognized for its high life expectancy, ranking fifth among OECD countries with an average of 85.7 years for women and 81.7 years for men as of 2023. This impressive statistic reflects significant improvements in healthcare, lifestyle, and economic conditions over the years. However, a recent study by the Shoresh Institution for Socioeconomic Research reveals that these gains are not evenly distributed across all segments of the population.

With approximately 1.2 million Israelis aged 65 and older, the aging population presents both opportunities and challenges. The report highlights that while longer lifespans are a positive development, they also place increased pressure on economic systems, particularly in terms of pensions, savings, and continued employment. Those who reach retirement age without a strong financial foundation often struggle to maintain their standard of living.

Disparities in Employment Among Older Israelis

One of the most striking findings from the study is the disparity in employment rates between Jewish and Arab populations. The data shows that 35% of Jewish men and only 20% of Arab men continue working beyond the age of 65. Similarly, about 20% of Jewish women remain employed after 65, compared to just 1-3% of Arab women. These differences reflect broader socioeconomic inequalities that persist in Israeli society.

In general, over 70% of working Israeli men over 65 are employed full-time, which is higher than the OECD average of around 67%. However, for women, the situation is quite different. Only 40% of women still working after age 65 (almost exclusively Jewish) have full-time jobs, below the OECD average of 50%. Most Jewish Israeli women who continue working do so part-time, indicating a need for more flexible and accessible employment opportunities for older women.

The Role of Education in Employment

Education plays a crucial role in determining employment outcomes for older adults. The study found that over 40% of men with 13 or more years of schooling continue to work, whereas only 20% of those with primary education do so. Similar disparities exist among women, emphasizing the importance of lifelong learning and skill development.

Income Inequality Among the Elderly

The financial stability of older Israelis varies significantly based on marital status. The report states that the average monthly combined income for couples aged 65+ has risen to over NIS 18,000 ($5,560) before tax. However, single men earn around NIS 8,000 ($2,470), and single women earn approximately NIS 7,000 ($2,160). This gap underscores the vulnerability of single older women, who often face greater financial insecurity.

Recommendations for Policy Changes

The Shoresh Institution study calls for comprehensive policy reforms to address the growing challenges faced by Israel’s aging population. Key recommendations include:

• Full indexation of old-age and income-supplement benefits to ensure they keep pace with inflation
• Proactive measures to support people in exercising their social rights
• A stronger safety net to protect pensions and provide targeted support for vulnerable groups, such as single older women, Arab households, and individuals with low levels of education
• High-quality, age-appropriate employment opportunities for adults aged 65 and older

Prof. Ayal Kimhi, vice president of the Shoresh Institution, emphasized that the gaps observed in the elderly population are not new but have accumulated over a lifetime. He stressed the need for early interventions in education, employment, and pension savings to prevent further inequality in the future.

Conclusion

As Israelis live longer, the challenge lies in ensuring that the benefits of this longevity are shared equitably. The study highlights the urgent need for structural changes in economic policies to support the aging population, particularly those at a disadvantage. By addressing these issues now, Israel can build a more inclusive and sustainable future for all its citizens.