Financial Support for Elderly in Israel: Insights from the Central Bureau of Statistics

Overview of Economic Challenges Faced by Seniors

According to the Social Survey conducted by the Central Bureau of Statistics (CBS), approximately start-third of the elderly population in Israel relies on financial aid from family members to meet their living expenses. This statistic highlights the difficulties faced by older individuals, particularly men aged 65 and older and women aged 60 and above, in maintaining financial independence.

The Gender Gap in Financial Dependence

The findings reveal a pronounced gender disparity: 37% of elderly women depend on family support, while just 28% of elderly men report similar reliance.

The Situation in the Arab Community

Within the Arab community, the situation is even more concerning, with 65% of elderly individuals relying on family financial support. This trend is attributed to a low pension savings rate and traditional family structures where the younger generation bears the responsibility for their elders.

Pension Savings and Economic Independence

More than half of the elderly population in Israel, 55%, report covering their living expenses through pension savings. However, this scenario presents another disparity, as many individuals who retired before the mandatory pension law was enacted in 2008 lack sufficient retirement savings.

Gender and Community Disparities in Pension Support

There are notable variances within genders and communities:

• Pension Dependence: 64% of elderly men utilize pension savings, compared to only 49% of women.
• Community Breakdown: In the Jewish sector, 59% of elderly individuals rely on pensions, whereas in the Arab sector, the figure plummets to just 24%.

Alternative Income Sources for the Elderly

Apart from pensions, less than a quarter (23%) of seniors depend on non-pension savings, with men showing higher rates of reliance than women. Only 13% generate income from property assets, such as rental income.

The Importance of Old Age Benefits

Almost all seniors (92%) receive an old-age pension, which is expected given the eligibility ages of 67 for men and 62 for women – both just over the minimum age required to participate in the survey.

Educational Attainment and Financial Independence

Examining the data through the lens of educational attainment reveals another layer of disparity: elderly individuals with academic degrees rely less on family support and social benefits.

• Higher Self-Reliance: Seniors with academic qualifications report a significant dependence on independent income sources, with 68% relying on pension income, 32% on non-pension savings, and 17% from property income-figures markedly higher than those within the general population.

These disparities underscore the complex financial landscape facing elderly individuals in Israel, emphasizing the need for systemic improvements to ensure better economic security for this demographic.