As part of its annual budget process, the Knesset passed the Economic Arrangements Bill on November 4, 2021, which gradually increases the official retirement age for women from 62 to 65 (the Bill does not affect the official retirement age for men, which will remain at 67). The new law increases the official retirement age by 4 months per year, from 2022 to 2024 (until the age of 63) and by 3 months per year from 2025 to 2032. In order to lessen the effects of this increase on approaching retirement, the law also extends the duration of unemployment benefits for women aged 60 and over, provides funding for new vocational training programs, increases the employment subsidy paid to low-income women and increases the amount of income that retirees under the age of 70 can earn without reducing their pensions. According to the government, the law aims at improving the long-term sustainability of the pension system, while increasing women’s employment rates and pension benefits. The government estimates that raising the retirement age will save around NIS 550 million (approx. USD 174.7 million) per year.
Source: Intenational Update SSA Dic.2021; Date: December 2021
