"54% of Israelis of Retirement Age Live on Pensions; 92% Receive Old Age or Disability Benefits"

The Central Bureau of Statistics (CBS) published new findings on Sunday from its 2024 Social Survey, revealing that 54% of Israelis of retirement age rely on pensions as a primary source of income, while 92% receive benefits such as old-age or disability allowances. The data expose deep gaps between Jews and Arabs and between men and women in how retirees finance their living expenses.

Jews Twice as Likely as Arabs to Live on Pensions

According to the CBS, 59% of Jews of retirement age (65 and older for men, 60 and older for women) live on pensions — more than twice the rate among Arabs, where only 24% report doing so.

Gender differences are also pronounced: 64% of men live on pensions compared to 49% of women, highlighting persistent disparities in lifetime earnings, employment continuity, and pension accumulation.

At the same time, 92% of Israelis of retirement age receive old-age or disability benefits, with only negligible differences between men and women or between Jewish and Arab populations.

Family Support More Common Among Arab Households

When it comes to support from family members, including spouses or children, 34% of Israelis of retirement age report receiving financial help from relatives.

The gap between sectors is striking: in Arab society, the rate reaches 65%, compared with just 28% among Jewish households, reflecting cultural and structural differences in intergenerational support systems.

A Quarter Rely on Non-Pension Savings

About 23% of Israelis of retirement age finance their living expenses through non-pension savings such as provident funds, continuing education funds, and personal investment portfolios.

These savings vehicles have drawn attention in recent weeks amid a Finance Ministry proposal to cancel tax benefits on continuing education funds — a plan Finance Minister Bezalel Smotrich has already declared will not move forward.

The CBS data confirm that such funds form a key pillar of financial security for roughly a quarter of retirees.

Other Income Sources: Assets, Inheritances

Beyond pensions and savings, 13% of retirees rely on income from assets such as rental properties or business profits, while 7.9% report living off inheritances, and 5.2% depend on returns from financial assets like stocks and bonds.

Education also plays a major role: among academics, 68% live on pensions (compared with 50% among non-academics), and 32% draw on non-pension savings, compared with 19% among those without academic degrees.

A Portrait of Retirement Inequality

The CBS findings underscore the uneven landscape of retirement income in Israel, shaped by differences in employment history, sectoral participation, education, and family support structures.

While universal benefits remain a critical lifeline for nearly all elderly Israelis, the data show that wealth, education, and ethnicity continue to determine the degree of financial independence in old age.