Israeli Social Security to Run Out of Money by 2045

YERUSHALAYIM -

The Israeli social security system, run by the National Insurance Institute (NII) has warned that it will be in the red as of 2026, and completely out of funds by 2045, Arutz Sheva reported on Thursday.

The forecast was based on an NII report analyzing the impact of current demographic trends on its disbursals in the coming years. The NII will be increasingly hard put to match the social security needs of Israel’s growing population.

The NII therefore recommended immediate consideration of options to expand its funding base, including raising premium rates and raising the retirement age.

NII Director General Prof. Shlomo Mor-Yosef stated on publication of the report: “In recent years we have taken various measures to deal with the challenges of an aging population and the NII’s actuarial means, following the previous actuarial report. These measures have helped defer an actuarial deficit for several years, but a warning sign to Israel still stands. I call on the government to raise the issue, and proceed to implement austerity measures today in order to improve the situation, this in order to avoid drastic measures in the future that may harm the level of benefits to policyholders.”