4. You have passed an income test (from retirement age up to age of entitlement to old age pension)

A person's entitlement to an old age pension from retirement age up to the age of entitlement to old-age pension is conditional on passing an income test. The income taken into account for this purpose is theirs only (not that of their spouse) – both from work and not from work.

Upon switching from the disability pension to old-age pension, there is no income test. When you reach retirement age, you will be entitled to the pension regardless of your income.

Please note
, if you are not entitled to receive an old-age pension between retirement age and the age of entitlement to the pension due to high income, you will be entitled to a pension deferral increment to your monthly old-age pension at the rate of 5% for every year you did not receive the pension due to your income.

Income that is not taken into account in examining eligibility for old-age pension

  • Income from a pension paid under Israeli law or foreign law, or under a collective agreement or employment contract signed in Israel or abroad (such as a pension from a place of work or a pension from Germany).
  • Linkage differentials on loans, deposits or savings plans, provided that they are exempt from income tax.

Income test for those who received a general disability pension before reaching retirement age

Those who received a disability pension before reaching retirement age, will receive at retirement age an old-age pension and their disability pension without interruption. The amount of old-age pension to be received equals either  the disability pension paid to them or the old-age pension due to them - whichever is higher.

  • Upon switching from disability pension to old-age pension, there is no income test with respect to your old-age pension.
  • Those receiving an old-age pension with increment of income supplement - their income from retirement pension and non-work income may have an impact on the increment for the spouse, under Disability Law.

Calculation method for additional payment and entitlement to an old-age pension based on your income.