Reaching senior citizen age opens a layer of financial entitlements: a benefit from Bituach Leumi, a card conferring broad discounts, reductions on municipal tax and household bills, and tax reliefs that apply from a certain age.
Old age pension and income supplement
The old age pension (kitzvat ezrach vatik) is paid by the National Insurance Institute on reaching the qualifying age, subject to conditions. Anyone on low income may also qualify for an income supplement. The qualifying age and the amounts are set in law and updated periodically.
The senior citizen card
The senior citizen card is the key to a wide range of benefits: discounts on public transport, at cultural and leisure venues, and across various services.
It is worth obtaining it early and presenting it proactively — many providers will not offer the discount unless asked.
Discounts: municipal tax, electricity, medicines and transport
A senior citizen is entitled to a municipal tax (arnona) discount, subject to income conditions and the policy of the local authority; discounts on household bills including electricity; reduced co-payments on medicines; and reductions on public transport.
Tax benefits from age 60 and from retirement age
The tax system includes reliefs specific to later life, among them a tax benefit on capital gains from a certain age, and a partial exemption on pension income through the qualifying pension mechanism.
The details are complex and circumstance-dependent. It is worth using a retirement adviser and verifying with the Tax Authority rather than relying on general rules.
Where to check and apply
The pension is handled through the National Insurance Institute. Discounts are handled partly through the local authority and partly through individual service providers. Tax benefits are handled through the Tax Authority. See also the pension and taxes sections of this site.
The information on this page is for educational purposes. Please consult a professional before making financial decisions.
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