Opinion: Prof. Avi Simhon's proposal to cancel mandatory pension savings for workers under 40

An opinion piece examining Prof. Avi Simhon's proposed reform to cancel mandatory pension savings for workers under 40. The author, an economic journalist, reviews the history of mandatory pensions in Israel, presents arguments for and against the reform, and strongly opposes it while suggesting alternatives such as incentives for savings from a young age or increasing the savings base through state matching.

An opinion piece by an economic journalist deeply examines Prof. Avi Simhon's proposed reform, the economic advisor to the Prime Minister, to cancel mandatory pension contributions for workers under 40. The author reviews the history of mandatory pensions in Israel since 2008, noting that the move succeeded in increasing the savings rate and channeling investments into the capital market. He presents the reform's central argument – easing the economic burden on young people – but rejects it, claiming it undermines the basic principle of early savings. The author offers alternatives: significant financial incentives for not withdrawing savings funds from childhood until retirement age, state matching of money to pension accounts instead of tax benefits, and a determination that the compensation component in pensions will not be withdrawable. He warns that the reform is intended to generate headlines during an election period, not to truly care for the public.