Perhaps similar to America’s Social Security Administration, Israel’s equivalent, Bituach Leumi (National Insurance Agency) is painting a bleak picture for the future based on a report released this week by Director-General Shlomo Mor-Yosef.
Bituach Leumi actuaries explain that based on the population of Israel today and other statistical data used including population forecasts and projected population data; by the year 2026 the agency will be paying out more money that it receives. Even if reserve emergency funds are used, these too will run out by 2045 based on today’s projections. At this time, Bituach Leumi will be out of money. One must understand this is the case even after recent modifications, pushing off retirement for men and women as people are living longer.
Needless to say, Welfare Minister Chaim Katz stated the predicted scenario may not be permitted to occur. One can assume efforts will be forthcoming to further push off retirement age and/or cut the amount paid to the elderly. The latter might provide some relief for Bituach Leumi, but it will only serve to increase the number of elderly Israelis living under the poverty line.
(YWN – Israel Desk, Jerusalem)
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2 Responses
Fire half of the employees and there will be enough money.
Is like this and more worse. I know many people abusing the system they take benefits and kupat cholim but not payng inside because its residency is required not actual citizenship and any way claiming no income. Plus now many new american and french figure how to switch family with residency status so dont paying income tax for five years and capital gain for ten year and foreign currencies for twenty years so of course betuach leumi is no money. I am payig for 22 years plus my wife and any claim more than health gets runnaround from idiot clearks but rich americans get connect with Moked Hametzaigim only. and when my son got first to work they added him debt for the years from before his working and only then made for him any disabelity benefit.