Ministry of Finance: Raising the retirement age for women will be spread over 11 years

The Ministry of Finance published a memorandum to increase the retirement age for women, now 62 years. According to the proposal, this is a gradual move that will take place over a period of 11 years, starting next April. In the first three years, the retirement age will be raised at a rate of 4 months per year, and for the rest of the years - 3 months per year. Then the retirement age will be linked to life expectancy when the retirement age for women can not exceed that of men.
The first stage in which the retirement age will be raised in 4 months per year will apply to the children born in June 1958 to May 1959 (ie, the 61-year-old woman); And the first step to raising the retirement age from the age of 63 to the age of 65 at a rate of 3 months per year will apply to the children born in June 1961 to May 1962.
In the second stage, beginning in January 2037, it is proposed to apply an automatic mechanism to raise the retirement age for a woman in accordance with changes in life expectancy, so that her retirement age will not exceed that of the man. This will be done as follows: any increase in one year in life expectancy will postpone the retirement age by eight months in order to maintain the same ratio between the years of work and the pension years.
According to the Finance Ministry, raising the retirement age for women to 65 improves the financial status of the National Insurance Institute by billions of shekels, subject to actual changes in life expectancy. This means postponing the cuts that are supposed to apply to the old pensions from July of this year to April 2020. Following this, the Histadrut announced the cancellation of the general labor dispute in the economy.
The Finance Ministry said the Justice Ministry expressed support for the move. Even though the law's mention of raising the retirement age has already been submitted, it is likely that it will be submitted to the cabinet for approval and to the Knesset vote only after the elections and with the establishment of the new government.
The outline is based on the recommendations of the public committee set up by the former budget director, Amir Levy, together with the National Insurance Institute and other representatives, and submitted its recommendations in 2016. She stated that the retirement age should be raised over the age of 12 to 65 at a rate of 3 months per year. Since this has not happened, the Finance Ministry is now seeking, at least in the beginning, to accelerate the rate of raising the retirement age in order to prevent the cuts in the old pension funds created by the deficit after the retirement age of women has not been raised. This is a move they have been trying to promote in the Finance Ministry since 2003, but so far the finance ministers have not succeeded in promoting it.
The Social Security Research Department presented the Minister of Social Affairs with a social, fair outline so that the additional years to the current retirement age will be taken into consideration for working age so that a 62-year-old woman can retire today while an 18-year-old woman will retire at the age of 67. " To women who are close to retirement age today, but rather to the younger generation that has more years of accumulation of rights. In addition, we must as a society consider women engaged in abrasive professions. In accordance with the welfare minister's policy, we will be full partners in providing a suitable social solution to solve the issue, and we recommend consulting with the data and knowledge acquired by us. "