568,000 workers have no private pensions for their retirement. 2.63 million workers have private pensions, including 2.4 million employees and 248,000 self-employed, according to Central Bureau of Statistics figures for 2012, published on Wednesday.
A breakdown of workers with private pensions shows that 80% of working men and 84% of working women have private pensions. The proportion of workers with private pensions increases with age and income level. 90% of workers with a gross monthly salary of more than NIS 7,500 have private pensions.
In sectors where employees have strong unions, and employers have deep pockets, such as the government and banks, nearly all workers have private pensions. In sectors with weak unions, fewer workers have private pensions. 99% of public administration employees, 97.4% of electricity and water, and 94.7% of banking, insurance, and financial sector employees have private pensions. At the other end of the scale, 59% of construction and catering and accommodations workers have private pensions.
93% of workers with a university degree and managers, 88% of administrators, and over 84% of free professionals have private pensions. The proportion of workers with private pensions in agriculture, industry, and retail and whole services is lower, at 75-77%.
The proportion of workers with private pensions rises from 59% of workers aged 20-24 to 77% of workers aged 25-29, and to 85-88% of workers aged 30-64.
86% of salaried employees have private pensions, compared with 58% of the self-employed. The gap is due to the difference in income: under regulations passed in 2008, salaried employees are required to have private pensions, but not the self-employed.
Published by Globes [online], Israel business news - www.globes-online.com - on October 10, 2013
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