Pensioners' Federation Pushes for 25% Average Wage Old-Age Pension Hike
At a Pensioners' Federation conference in Tel Aviv, change-bloc parties pledged to raise old-age pensions to 25% of the average wage. Meanwhile, experts warn of an 810 billion NIS actuarial deficit threatening the National Insurance Institute's future stability.
Are old-age pensions in Israel set to rise? During an election conference held by the Pensioners' Federation at the Histadrut House in Tel Aviv, representatives of opposition and change parties pledged to gradually increase pensions to 25% of the average wage. The statements were made against the backdrop of ongoing claims of erosion in allowances and the difficulty senior citizens face in coping with the rising cost of living.
The conference, held on Sunday, was attended by dozens of retirees and party representatives. Pensioners' Federation Chairman Shmuel Mizrahi said the organization represents 1.3 million retirees, emphasizing the need to prioritize the needs of senior citizens. Key issues discussed included the amount of old-age pensions, the nursing care crisis, the need for national nursing insurance, and combating loneliness in the third age.
MK Gilad Kariv of The Democrats expressed support for raising the old-age pension to 25% of the average wage and indexing it accordingly, clarifying that the move would have to be implemented in phases. He stated that the old-age pension should remain universal, provided to all eligible recipients under existing rules, alongside targeted assistance to disadvantaged populations. He also called for strengthening the National Insurance Institute and returning funds taken from it to the state treasury.
Dr. Yael Benvenishti, a representative of Yisrael Beytenu, presented a framework that includes an initial increase of 1,000 NIS, followed by a gradual rise to 25% of the average wage. She stated that the pension should be indexed to either the average wage or the Consumer Price Index, whichever is higher. Representatives of the BeYachad and Yashar parties also expressed support for increasing old-age pensions while maintaining their universal nature.
However, it should be remembered that these are commitments made during an election conference. According to the Pensioners' Federation, the Likud, Shas, United Torah Judaism, Religious Zionism, and Otzma Yehudit parties did not present platforms containing clear commitments regarding the needs of the retiree public.
The Pensioners' Federation clarified that they will continue to monitor party commitments even after the elections and demand that the incoming government promote solutions for the hardships faced by senior citizens.
Actuarial Deficit and Future Funding Challenges
Against the backdrop of promises to raise old-age pensions, the question of the National Insurance Institute's ability to continue funding the allowances over time is also sharpening. According to publications this week, senior officials in economic government ministries intend to promote a plan after the elections that may include changing eligibility conditions for benefits and revoking benefits from those who evade military service. This comes amid warnings of an actuarial deficit of approximately 810 billion NIS in the National Insurance Institute and the depletion of the reserve fund around 2035. At this stage, no final decision has been made on cutting pensions, but the question of financing payments and ensuring the institution's financial stability is expected to take center stage in post-election discussions.
