The moment when time doesn't get counted
The offer usually arrives fast. A meeting with a manager, a document with numbers, "think it over by the end of the week." People sign out of pressure, fear, or excitement — and discover years later that what looked like a good deal really wasn't.
An early retirement package can be an excellent opportunity. But you need to know exactly what to check before you sign.
First question: how many years do I have left before retirement age?
This is the most important question. Every year you don't work is a year that doesn't accumulate pension and doesn't earn an old-age allowance. If you're 55 — you have 12 years left. If you're 62 — one.
That difference is enormous. Twelve years without pension contributions is a significant drop in your final accumulation.
What a "good" package includes
- Full severance pay — one year's salary for every year of work, with no penalties
- Unemployment benefits — full eligibility, coordinated with the tax assessor
- Bridging pension coverage — the employer keeps contributing to your pension until age 67, even if you're not working
- Bridging health insurance — because the group health insurance ends on your last day
- A retention bonus / payment for accrued annual leave
⚠️ Bridging pension coverage is the item that's easiest to overlook — and the most expensive in the long run. An employer who stops contributions from age 55 to 67 reduces your pension accumulation by tens of percent.
The question no one asks: what will happen at age 70?
An early retirement package usually includes a lump sum that looks large — one million shekels, two million. People look at the number and feel it's "a lot of money."
But let's do the math: if you live another 25 years after retirement, ₪1 million divided across 300 months = ₪3,333 a month. Before tax. Before inflation. With no pension allowance.
Is that what you imagined?
What to do before you sign
- Ask for at least 2–3 weeks to think it over — and don't be embarrassed to.
- Get independent advice — not from the employer's agent.
- Calculate your expected allowance with and without the package.
- Check for alternative health insurance.
- Ask: "What will my monthly income be at age 70?" — and compare it to your needs.
The best package is the one that gets examined — not the one you accept under pressure.
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