תמונת דף
תקציר
The replacement rate between pension allowance and salary pre-retirement is a very important measure for examining existing and desired policy on the pension issue. While the existing literature refers to the replacement rate as calculated mainly on the basis of theoretical models, the current research is innovative in that the replacement rate is actually measured and analyzed, based on the employer-employee data. For employees who retired and started receiving a pension allowance in 2019, it was found that the gross replacement rate is on average 0.41, with a lower median (0.39). When the net ratio is calculated, the average increases to 0.44 and the median to 0.43; here, the policy of tax relief for pensioners can be identified. The replacement rate is inversely related to the salary before retirement, with a large variance, mainly between the sexes. It is clear that the National Insurance pension raises this ratio, up to the point of doubling it for the weak populations, thereby implementing its goal of providing this basic level of economic and social security. In addition, in order to provide a better understanding of the significance of the replacement rate and the values that were measured for it, this paper presents a comprehensive overview of the state of pensions in Israel, the extent of pension coverage, the size of the actual pension provisions and employees' pension allowances.
The results of this research are of great importance. First, from an applied perspective, this work provides a deeper understanding of the pension data in the rich employer-employee database and its potential for statistical production. Also, the findings can serve as a basis for testing the effectiveness of policy planning in the area of pensions. In addition, the replacement rate calculated in practice can help in examining the level of accuracy of the theoretical models and their fit while also considering small population groups.
Keywords: pension allowance, replacement rate, pension provisions, employee
