Life expectancy in Israel has risen significantly in recent decades. As older adults rely on their limited savings, this process – despite its positive aspects – may lead to a decline in the average standard of living of the older population. In addition, the expected increase in the share of older adults in Israel’s total population is likely to strain the support systems that serve them. That said, over the last decade and a half, employment rates of individuals aged 65 and over have increased, as have their incomes. At the same time, since the increase in employment has been concentrated among the relatively strong populations, gaps between population groups within the older population have widened.

In light of these changes, support systems for the older population must be adjusted to enable better coping with demographic changes and with overall trends in the employment and income of older citizens. In particular, it is necessary to assist the weaker population groups, who rely more on welfare systems and less on labor income, in reducing the gap between them and other groups. The demographic growth of the Haredi (ultra-Orthodox) population, which at present does not fully integrate into the labor market, is particularly challenging, since it is expected to substantially contribute to an increase in income gaps among the older population in the future, making it more difficult for welfare systems to cope with these gaps.