Pension in Israel for Olim: Everything You Need to Know (2026 Guide)

Moving to Israel is one thing. Figuring out whether you will have a pension when you retire here — and what happens to the one you already built back home — is a completely different challenge.

This guide breaks down exactly how the Israeli pension system works, who qualifies, how much you can expect, and the big question everyone asks: can you collect from both Israel and your home country at the same time?

The Three Types of Pension in Israel

Before anything else, it helps to understand that pension in Israel is not one thing — it is three separate layers:

Type	What It Is	Who Manages It
State Old-Age Pension (קצבת זקנה / Kitzvat Zikna)	Government monthly payment at retirement age	National Insurance Institute (ביטוח לאומי / Bituach Leumi)
Mandatory Workplace Pension (פנסיה / Pensiya)	Private pension fund contributions from employer and employee	Private pension funds, regulated by government
Severance Pay (פיצויים / Pitzuim)	One month's salary per year worked, paid at end of employment	Employer

Most Olim focus only on the state pension — but the mandatory workplace pension is often where the real money builds up over time.

The State Old-Age Pension — How It Works

Who Is It For?

The state old-age pension — officially called Old-Age Allowance (קצבת זקנה / Kitzvat Zikna) — is paid by the National Insurance Institute (ביטוח לאומי / Bituach Leumi), which is Israel's equivalent of Social Security in the US, National Insurance in the UK, or Centrelink in Australia.

Every Israeli resident aged 18 and over is required by law to pay National Insurance contributions. These contributions build your eligibility for the state pension.

Eligibility is based on residency, not citizenship. Even if you have not yet received Israeli citizenship, if your life is centered in Israel you are considered a resident — and are both obligated to pay contributions and eventually eligible to receive the pension.

[H3] Retirement Age in Israel

Gender	Retirement Age
Men	67
Women	62 (gradually rising to 65)

The Minimum Contributions Requirement

To qualify for the standard state pension, you must have paid Bituach Leumi contributions for a minimum of 12 years (144 months). These months do not need to be consecutive — they accumulate over your entire working life in Israel.

Who Qualifies as an Oleh — And Who Doesn't

This is where it gets critical for new immigrants. There are three different situations you may fall into:

Situation 1: You Made Aliyah Before Age 60

If you arrived before age 60 and work here, you will pay Bituach Leumi contributions throughout your working years and will qualify for the standard state pension — provided you accumulate the required 12 years of contributions by retirement age. The earlier you make Aliyah, the more contribution years you have to build your record.

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Situation 2: You Made Aliyah After Age 60 — Special Pension

If you arrived after age 60, you will generally not qualify for the standard state pension. You simply do not have enough working years remaining to reach the 12-year minimum.

However, you may still be eligible for a Special Senior Citizen Pension (גמלת אזרח ותיק מיוחדת / Gimlat Ezrach Vatik Meyuchedet). This is a welfare-based pension funded by the Ministry of Finance, designed specifically for Olim who arrive too late to qualify for the standard pension.

Tip: because this is welfare-based, all worldwide income is taken into account when assessing eligibility. Significant foreign income or assets may reduce or eliminate your entitlement.

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Situation 3: You Already Reached Retirement Age Before Making Aliyah

If you were already past retirement age when you made Aliyah, you are not eligible for the standard pension. You may apply for the special welfare-based pension above, subject to income testing and residency conditions.

How Much Is the Israeli State Pension? (2026 Official Rates)

The following rates are taken directly from the official Bituach Leumi website, effective January 1, 2026:

Situation	Monthly Amount
Individual	₪1,838
Individual aged 80 or older	₪1,941
Couple	₪2,762
Couple (pension recipient aged 80 or older)	₪2,865
Individual + 1 child	₪2,419
Couple + 1 child	₪3,343
Individual + 2 or more children	₪3,000
Couple + 2 or more children	₪3,924

Notes:

• Child increment of ₪581 is paid for the first two children only

  
  

• Spouse increment of ₪924 is paid only if the spouse does not receive their own pension from Bituach Leumi

  
  

• If both spouses qualify separately, each receives an individual pension

  
  

• Health insurance contributions of ₪237/month (individual) or ₪340/month (couple) are deducted directly from your pension

Tip: For the most up-to-date pension rates and a full breakdown of all increments and deductions, visit the official Bituach Leumi pension rates page directly at btl.gov.il. Rates are updated every January 1 and the page is available in English.

Step-by-Step: Converting Your Driver's License in Israel

Step 1: Complete the Online Application — the Green Form (טופס ירוק / Tofes Yarok)

The Green Form (טופס ירוק / Tofes Yarok) used to be a physical paper document — older Olim may still call it that. Today it is submitted entirely online via the Ministry of Transport portal.

• Your name must be entered in Hebrew

  
  

• The final section is a full medical self-declaration — complete it honestly and in full

  
  

• If you answer "yes" to any medical question, do not submit yet — you must first obtain a letter from your Israeli doctor addressing each condition and confirming you are "fit to drive / כשיר לנהוג", then upload it before submitting

  
  

• If you have a Kosher phone that cannot receive SMS, select the voice message option (הודעה קולית / Hoda'a Kolit) instead of SMS (מסרון / Misron)

  
  

• Once submitted, you will receive a confirmation by SMS or voice message with instructions to proceed

Tip 1: This step must be completed before your optometrist visit. The eye clinic cannot open your file in the system without it.

Tip 2: For a step-by-step breakdown of what these numbers mean, check out our full guide: How to Read Your Israeli Verification Codes

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The Seniority Bonus (ותק / Vetek)

For every full year of Bituach Leumi contributions accumulated, your pension increases by 2%, up to a maximum bonus of 50% (requiring 25 years of contributions).

A full year of insurance is defined as 12 months — consecutive or not.

This means someone who made Aliyah young and worked in Israel for 25 or more years could receive up to ₪2,757 per month as an individual — 50% more than the base rate.

The Income Test — Between Retirement Age and 70

Between your retirement age and age 70, the state pension is means-tested. If your income from work or other sources exceeds a certain threshold, your pension is reduced or paused until age 70.

At age 70, the pension becomes universal — paid regardless of your

income or wealth, with no means test.

Tip: If you are still working past retirement age, it may be worth deferring your pension claim. For every year you defer due to work income, your eventual pension increases by an additional 5% on top of the base and seniority amounts.

The Mandatory Workplace Pension

Since 2008, all Israeli employers are legally required to contribute to a private pension fund for every employee. This is entirely separate from the Bituach Leumi state pension and is where significant retirement savings accumulate automatically.

Contributor	Minimum Contribution Rate
Employer	6.5% of monthly salary
Employee	6% of monthly salary
Total	12.5% monthly

For someone earning ₪20,000 per month, this means ₪2,500 flowing into a private pension fund every month — automatically, without any action on your part.

Over a 20-year Israeli career, this alone can build a retirement fund of ₪600,000 or more depending on investment returns.

These funds are managed by licensed private pension companies and you can choose your fund and investment track. Your employer must enroll you within 3 months of starting work — if they have not, this is something to raise with your employer or a pension advisor.

Can You Get Both an Israeli Pension AND a Pension From Your Home Country?

This is the question almost every Oleh asks — and the answer depends on where you are from.

From the United States — Yes, With Important Warnings

American Olim can receive both US Social Security and Israeli Bituach Leumi. A US-Israel Social Security agreement has been in force since 1993, helping people who have divided their careers between the two countries to qualify for benefits in both. However there are two critical warnings:

If you are between ages 62 and full US retirement age and already receiving Social Security while living in Israel, you are limited to working no more than 45 hours per month in Israel. Exceed that and your US Social Security payments stop until you stop working or reach full retirement age.

Tip 1: The Windfall Elimination Provision (WEP): If you receive an Israeli government pension (Bituach Leumi) and US Social Security, the US may reduce your Social Security payment. As of 2026, the maximum WEP reduction is approximately $587 per month. This catches many American Olim completely off guard at retirement.

Tip 2: Self-Employed Olim Are Not Fully Protected: The 1993 agreement does not fully cover the self-employed in the same way it covers employees. Self-employed American Olim may find themselves contributing to both systems simultaneously — with a combined burden that can exceed 30% of income. If you are self-employed, speak to a cross-border tax specialist before assuming you are covered.

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From the UK — Yes, But Your Pension Is Frozen

UK citizens can continue receiving their UK State Pension while living in Israel. However, your pension will be frozen at the rate it was when you left the UK or first claimed — it will not increase with annual UK cost-of-living adjustments. This is because Israel does not have a reciprocal uprating agreement with the UK.

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From Other Countries — Check Bilateral Agreements

Israel has social security conventions with a number of countries. Whether you can collect from both depends on the specific agreement between Israel and your home country. You can find the full list of countries Israel has conventions with on the Bituach Leumi international conventions page.

Tip: Never assume you can or cannot collect from both systems. The rules differ significantly by country and personal situation. Always consult a licensed financial advisor or accountant who specializes in cross-border pensions before making any decisions.

The 10-Year Tax Exemption — Bonus for New Olim

This is one of the most significant financial benefits of making Aliyah and one that is frequently overlooked.

For the first 10 years after making Aliyah, all income and assets from abroad — including foreign pensions — are completely exempt from Israeli income tax. This means your US 401(k), IRA, Social Security, UK pension, or any other foreign pension income arrives in Israel tax-free for a full decade.

After 10 years, Israel taxes foreign pension income — but only up to the rate it would have been taxed in your country of origin. If your US pension would be taxed at 20% in America, Israel will not tax it at more than 20%.

This 10-year window creates real planning opportunities that disappear if you do not act during that period. A qualified cross-border financial advisor can help you make the most of it.

How to Check Your Bituach Leumi Pension Entitlement

You can check your contributions record and estimated future pension through the Bituach Leumi personal portal:

1. Go to ps.btl.gov.il

   
   

2. Log in using your Israeli ID Card (תעודת זהות / Teudat Zehut) number and personal password

   
   

3. Navigate to your insurance record to see contributions history and an estimate of your future pension

   
   

4. You can also use the official pension calculator on the Bituach Leumi website

   
   

You can also visit your nearest Bituach Leumi branch in person. There is a dedicated Counseling Service for the Elderly at every branch, open to anyone with questions about pension eligibility. Alternatively, call the dedicated elderly call center at *9696.

How to Apply for the State Pension

The pension does not start automatically when you reach retirement age — you must apply.

• Submit a Claim for Old-Age Pension form to your nearest Bituach Leumi branch

  
  

• Submit it close to your retirement date — not years before

  
  

• You can submit up to 12 months after reaching retirement age and Bituach Leumi will pay retroactively for those months

  
  

• Claim forms can also be submitted online via the Bituach Leumi website

  
  

• If you are still working past retirement age, state on the form that you are deferring — this triggers the 5% annual deferral bonus

  
  

Frequently Asked Questions (FAQ)

I never worked in Israel — do I still get a pension?

Possibly. A person who made Aliyah and never worked in Israel may still be registered as insured with Bituach Leumi under a non-worker category and can receive a pension — though usually lower than a worker's pension. The key is that contributions must have been paid for the minimum period, either directly or in some cases through a spouse. Speak to Bituach Leumi directly to check your specific situation.

What if I don't have enough years of contributions?

If you reach retirement age without the minimum 12 years of contributions, you will not qualify for the standard pension. You may qualify for the special welfare-based pension (גמלת ותק מיוחדת - Gimlat Ezrach Vatik Meyuchedet) depending on your age, income, and residency situation.

Does my foreign pension income affect my Israeli state pension eligibility?

Not for the standard pension — income from a private or foreign work pension is not taken into account when calculating your standard Israeli state pension eligibility. However, if you are applying for the special welfare-based pension (for those who arrived after retirement age), all worldwide income including foreign pensions is fully considered.

Can I receive the Israeli pension if I travel or live abroad part of the year?

If you receive the standard old-age pension you can generally travel freely. However if you receive the income supplement — the additional welfare top-up paid to those with low income — you cannot leave Israel for more than 2 months or payments stop. Contact Bituach Leumi before any extended trip abroad to understand your specific situation.

What happens to my mandatory workplace pension if I leave Israel?

Your private pension fund savings belong to you and remain in your account. You can generally access them at retirement age regardless of where you live at that time. Rules around early withdrawal and tax treatment depend on your specific fund — speak to your pension fund provider or a licensed pension advisor.

Final Tip: Check Your Pension

One thing most Olim don't realise: you can check exactly how many contribution months you have accumulated and get an estimate of your future pension right now — without visiting any office.

Log into your personal portal at ps.btl.gov.il to use the official pension calculator. Five minutes today could save you a very unpleasant surprise at retirement age.