Pension privatization in Israel

More than twenty years have passed since the World Bank published its influential report ‘Averting the Old Age Crisis’ recommending countries to adopt a privatized pillar in their pension systems. The case study of Israel, which adopted the recommendations, enables an evaluation of a pension privatization which followed these recommendations. The case study of Israel shows that privatization leads to inequality: inequality of benefits, inequality of services, and inequality of pension coverage. The chapter suggests that appropriate regulation, as well as an inclusive process of pension reform (including consultations with unions, employers and NGOs), may alleviate the system’s problems.