Myths about Bituah Leumi – where your money goes

The article debunks common myths about Bituah Leumi, explaining that it is not a personal savings account but a generational solidarity system. It provides calculations for the old-age pension in 2026: a basic payment of 1,838 shekels, with a maximum of 2,757 shekels including seniority. It describes rules for working after retirement, deferring payments, and supplements up to the poverty line.

The article debunks common myths about Bituah Leumi, explaining that it is not a personal savings account but a generational solidarity system: contributions from working citizens go toward current payments to pensioners and other groups. It provides specific calculations for the old-age pension in 2026: the basic payment for a single person is 1,838 shekels per month, and for citizens over 80, it is 1,941 shekels. For each year of seniority, 2% is added to the base amount, but the maximum supplement is capped at 50%, yielding a maximum payment of about 2,757 shekels. It describes rules for working after retirement: the income limit for those under 70 is 10,113 shekels for a single person, and exceeding it may reduce the pension. For each year of deferring payments, an additional 5% is added to the future pension. Low-income pensioners may qualify for a social supplement of up to 4,375 shekels for a single citizen. A health insurance contribution of 237 shekels per month is deducted from the pension. The article emphasizes that Bituah Leumi forms only a basic social safety net, while the main source of income in old age is private pension savings.