An international report released on Tuesday has put Israel's poverty rates among elderly people far above the average among developed countries.
One out of five retirees in Israel lives in poverty, according to "Pension at a Glance 2013," an annual report by the Organization for Economic Cooperation and Development (OECD).
Some 21 percent of the population older than 65 in Israel is poor, compared to an average of about 13 among the OECD countries.
Pension in Israel is comprised of a state-supported insurance pension combined with means-tested income support. In January 2008, pension saving by mandatory contributions to pension funds have been introduced in Israel.
However, the report shows that Israeli public expenditure on old-age benefits comprised only about 5 percent of its Gross Domestic Product (GDP), compared to more than 8 percent on average in other OECD countries.
As a result, the report said, many elders in Israel cannot afford basic medical and social needs.
The report shows that by 2050, the retirement age of elderly in the OECD's 34 member countries will increase by 3.5 years on average for men and 4.5 years for women, to at least 67 years.
"Raising retirement ages and promoting private pensions are all steps in the right direction but alone they are insufficient, Angel Gurria, OECD Secretary-General, said in a statement. " Governments need to consider the long-term impact on social cohesion, inequality and poverty. Ensuring everyone has a decent standard of living after a life of work should be at the heart of policies."