{"id":456140,"date":"2026-05-19T06:15:39","date_gmt":"2026-05-19T06:15:39","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/456140\/"},"modified":"2026-05-19T06:15:39","modified_gmt":"2026-05-19T06:15:39","slug":"smotrich-denies-bid-to-hike-retirement-age-to-70-officials-say-its-part-of-contingency-plan","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/456140\/","title":{"rendered":"Smotrich denies bid to hike retirement age to 70; officials say it’s part of contingency plan"},"content":{"rendered":"

Finance Minister Bezalel Smotrich has dismissed reports that Israel is seeking to gradually raise the retirement age to 70 as part of a multi-year economic plan.<\/p>\n

Smotrich bashed the reports in the Hebrew press as \u201cfalse\u201d in a social media post on X.<\/p>\n

\u201cJournalists have not contacted me on the subject to enquire and receive clarifications,\u201d Smotrich protested in his Wednesday statement. \u201cSo at least the public should know my position: The retirement age will not be raised to 70. The issue is not on the agenda.\u201d<\/p>\n

Smotrich\u2019s comments came after reports said senior officials in the Finance Ministry had begun formulating a broad multi-year economic plan for 2027\u20132032, including sweeping economic reforms aimed at lowering the budget deficit. Among the measures under discussion were the cancellation of certain tax and VAT exemptions and the gradual raising of the retirement age to 70, the reports said.<\/p>\n

The retirement age for men in Israel is 67, and the retirement age for women varies from 62 to 65, depending on their year of birth. The mandatory retirement age is 67 for both sexes.<\/p>\n

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Although the Finance Ministry is not actively advancing measures to raise the retirement age to 70, officials noted that it remains part of a long-term economic contingency plan prepared and ready for use when needed.<\/p>\n

\t\"\"<\/a>
\n\t\tIllustrative: Workers are seen at a construction site in Katzrin\u2019s 12th district, where 1,800 new housing units are being built, a project expected to double the city\u2019s population, in Katzrin, Golan Heights, January 6, 2025 (Michael Giladi\/Flash90)<\/p>\n

Pension fund review<\/p>\n

As part of the multi-year plan, the Finance Ministry is also considering reducing pension contributions. Currently, employee and employer pension contributions, along with taxes and other deductions, can reach 30% of an Israeli worker\u2019s salary.<\/p>\n

\u201cAmong other things, we are conducting an in-depth review of pension and provident fund contributions, along with important wage-related initiatives,\u201d a senior Finance Ministry official told Israeli daily Ynet.<\/p>\n

\u201cThe goal in these areas is not to enrich the state\u2019s coffers,\u201d the official claimed, \u201cbut to increase citizens\u2019 disposable income and improve their welfare, while distributing the tax burden in a more balanced and appropriate way.\u201d<\/p>\n

Unequal impact<\/p>\n

Senior industry figures praised the very fact of preparing a multi-year government plan after years without one.<\/p>\n

The proposal to raise the retirement age is not new. It is being justified by the rise in life expectancy, which in turn means people can work for more years today than they used to.<\/p>\n

Israel is ranked<\/a> fourth in life expectancy both among the countries belonging to the Organization for Economic Co-operation and Development (OECD) and all countries around the world, according to the OECD\u2019s latest report. Life expectancy in Israel between 2022 and 2023 rose among both women (from 84.8 to 85.7 years) and men (from 80.7 to 81.7 years).<\/p>\n

The main issue with raising the retirement age is that it doesn\u2019t affect everyone equally. Those in physically demanding jobs like cleaning, construction, driving, or shift work bear the brunt of the impact of hiking the retirement age. People\u2019s ability to work in physically strenuous roles typically decreases with age, and the opportunities for retraining at an older age are limited.<\/p>\n

Conversely, those in less physically demanding roles \u2014 like high-tech workers, doctors, consultants, managers, or lecturers \u2014 can sometimes continue their careers well past the age of 70.<\/p>\n


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