Alvin E. Roth
Nobel Prize Winner in Economics 2012. Professor of Economics at Stanford University.
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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? Q