Israel in the middle of the current decade presents a surreal economic picture: About 70% of Israelis own their homes, according to data from the Central Bureau of Statistics (CBS), with an even higher ownership rate among those aged 65 and older. Yet amid soaring living costs, many of these asset holders are grappling with acute cash-flow shortages.
An analysis conducted for Ynet and Mamon by the Financial Planning Center examined a range of official data, including CBS figures on the socioeconomic and health profile of Israelis aged 65 and over, municipal status data, the National Insurance Institute’s latest poverty report and average housing prices in the third quarter of 2025.
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Retirees with high asset ownership facing severe liquidity constraints
(Photo: Drazen Zigic, Shutterstock)
The findings reveal a striking contradiction. While roughly 27% of Israeli households, nearly 968,000, live in poverty or food insecurity, homeownership among retirees has reached record levels.
“The data exposes an entire sector of retirees with high asset ownership facing severe liquidity constraints,” said Israel Atia, founder and CEO of the Financial Planning Center. “This has created a broad class of retirees who are asset-rich and cash-poor, theoretical millionaires living inside golden walls with empty pockets.”
Tel Aviv vs. Haifa
The analysis compared homeownership and income support dependency in Tel Aviv and Haifa. In Tel Aviv, where the average apartment price exceeded 3.6 million shekels in late 2025, 77.6% of seniors own their homes. Yet 10.5% still require income supplements from the National Insurance Institute.
A working Tel Aviv retiree earns an average monthly salary of 14,609 shekels, but that drops to an average pension of 7,576 shekels after retirement. The gap of more than 7,000 shekels a month helps explain why 37.4% of the city’s retirees remain in the workforce well into old age.
In Haifa, where average apartment prices stand at just over 1.8 million shekels, nearly one in five seniors relies on income support despite a similar homeownership rate of 75.7%. Only 27.8% of retirees there remain employed, and many experience a sharp income drop from work to pension.
“For Haifa’s retirees, homeownership becomes a survival asset that still fails to fully shield them from the cost of living,” Atia said.
Ra’anana vs. Ofakim
The analysis also highlighted sharp disparities between affluent Ra’anana and lower-income Ofakim. In Ofakim, 70.9% of seniors own homes, yet 33.2% require income supplements. In Ra’anana, homeownership reaches 80.6%, while only 5.2% of retirees need additional support.
Ra’anana also stands out for its high life expectancy, averaging 86.7 years, underscoring what Atia calls the growing challenge of “frozen capital.”
“As life expectancy rises, wealth locked in housing must finance a longer period of living and care,” he said.
Unlocking frozen wealth
To address the liquidity crisis, many retirees are turning to tools such as reverse mortgages, which allow homeowners aged 60 and over to borrow against their property without monthly repayments, with the loan repaid only when the home is sold or the owner passes away.
Western countries have already embraced financial products that turn walls into purchasing power, Atia said, pointing to reverse mortgages and sale-and-leaseback models common in Europe. Bank of Israel reports note that easing regulation and boosting competition in this sector could help seniors finance living and medical expenses without burdening public budgets.
Cultural barriers remain strong, however, particularly the desire to leave property to children.
Looking ahead, Atia stressed that future generations cannot rely solely on real estate. “Housing should be a quality-of-life bonus, not the sole and frozen source of retirement funding,” he said.