Israel to Raise the Retirement Age for Women to 65 by 2031

The Israeli Ministry of Finance submitted a memorandum to the government on Thursday, concerning its plan to raise the retirement age of women in the country from 62 to 65 by 2031. The plan also outlines an automatic increase every three years, starting in 2037, of two-thirds of the forecasted increase in life expectancy. The retirement age for men will remain at 67 but is expected to increase to 70 within the next few decades.

For daily updates, subscribe to our newsletter by clicking here.

In a 2017 report, the OECD stated that for people that entered the labor market in 2016 at age 20, the retirement age will increase to 65.8 for men and 65.5 for women on average in OECD countries, compared to 64.3 and 63.4, respectively, for people retiring in 2016. Life expectancy in Israel is relatively high, raising concerns that the country's pension system could not handle the burden in the future. According to the OECD's Life expectancy at birth indicator, it stood in 2016 at 80.7 for Israeli men and 84.2 for Israeli women, compared to 76.1 for men and 81.1 for women in the U.S. and 79.4 for men and 83 for women in the U.K.