8upvotes
8upvotes

Today in Israel, every employer is forced by law to pay 17.5% of an employee's salary towards a sort of "Country Pension Plan". Out of this, 5.5% is taken from the employee's monthly salary. The average salary in Israel is 9,260 NIS per month, which is about $2400. Assuming the employee retires between the ages of 64-67, the monthly pension received would be about 1,500 NIS (~$400).The average monthly rent for a normal family home in Israel is already 4,000 NIS (~$1030). As it appears above, the system is broken. This mechanism is supposed to help senior people live well after retiring, when in reality it's a direct route to poverty. From your vast experience and knowledge, how might you advise the Israeli government to revamp this mechanism, and achieve its original purpose?

a year ago

QAssaf Levy
J Magana
Joyce B
Carolina Havener
Tonya Haynes
Else Hamblin
Fannie Swanson
Blake Evans

Share via

Alvin E. Roth

Crowd Interview

Alvin E. Roth

Nobel Prize Winner in Economics 2012. Professor of Economics at Stanford University.

This is a community-run Crowd Interview. Help get answers by asking, upvoting and sharing!

No one answering yet · Belong here? Let us know