The Hidden Economic and Physical Toll of Elderly Loneliness in Israel

A new analysis reveals that chronic loneliness among Israel's elderly population carries a severe physiological and economic toll, driving up healthcare costs and highlighting the urgent need for strategic national intervention.

Walla•Author: Daniel Cohen
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The Hidden Economic and Physical Toll of Elderly Loneliness in Israel
Photo: צילום: Walla.co.il

Loneliness often brings a quiet isolation to the elderly, a feeling that tends to sharpen during the holidays. According to the Social Survey conducted by the Central Bureau of Statistics, roughly a quarter of Israelis aged 65 and over (26%) report feeling lonely frequently or sometimes. Beyond the personal distress, this loneliness carries a steep economic price. At the end of 2023, approximately 1.25 million people aged 65 and above lived in Israel, with projections indicating this figure will climb to around 2.1 million by 2045.

The Economic Cost of Loneliness

Quantifying this phenomenon globally reveals massive financial impacts. In the United States, researchers from AARP and Stanford University examined Medicare expenditures for 5,270 beneficiaries over the age of 65. For every individual with a sparse social network, the federal program spent an estimated 1,608 dollars annually. This group comprises about 14% of beneficiaries, roughly 4 million people, totaling about 6.7 billion dollars per year. The excess costs stem primarily from hospitalizations and stays in nursing facilities.

In Spain, researchers estimated the cost of unwanted loneliness at approximately 14 billion euros in 2021, accounting for about 1.2% of the GDP. Direct healthcare expenses accounted for 6.1 billion euros of this total, driven largely by frequent doctor visits and higher consumption of prescription drugs.

Lior Strasberg, CEO of Matav, Israel’s largest organization in the field of nursing care for the elderly, notes: "This is an acute issue that is often pushed to the margins of the news, yet it holds immense significance. The coming decades will be characterized by rising life expectancy, and our obligation as a state and society is to strategically prepare for this."

Physiological Impacts and Healthcare Burden

Behind the heavy economic cost lies a profound physiological decline. Social isolation is not merely emotional distress; it is a clinical risk factor that accelerates a series of chronic illnesses. According to the U.S. Surgeon General, poor social connections increase the risk of heart disease by 29% and stroke by 32%. Among older adults, the risk of dementia and cognitive decline surges by roughly 50%. Furthermore, a meta-analysis encompassing over a million people found that loneliness raises the risk of type 2 diabetes by 32%.

Daily functioning also suffers. A British study tracking some 2,800 individuals aged 60 and older found that loneliness predicts physical frailty four years later. In Israel, excess healthcare expenditures for diabetes patients were estimated at roughly 3.5 billion shekels annually, while strokes cost the economy about 2.3 billion shekels per year, heavily driven by hospitalizations.

Nursing Benefits and Institutional Response

Declining functional independence in old age is met in Israel by the nursing care benefit provided through the National Insurance Institute. Public spending on this benefit has grown significantly, fueled by the 2018 nursing reform. According to the State Comptroller's report, expenditures surged from roughly 7 billion shekels in 2018 to approximately 21 billion shekels in 2025, while the number of beneficiaries grew from 180,000 to around 392,000.

Strasberg emphasizes that nursing assistance offers profound social value alongside physical aid. The personal connection formed between caregiver and patient provides security, companionship, and a sense of care. Matav also operates day centers, supportive communities, and volunteer programs specifically aimed at alleviating loneliness.

Global Policy and International Action

Loneliness has increasingly claimed a spot on the international agenda. In May 2025, the World Health Organization adopted its first-ever resolution on social connection, urging nations to develop evidence-based policies. A WHO global report revealed that one in six people experiences loneliness, which is linked to some 871,000 deaths annually, prompting calls to make social connectivity a public health priority.

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