Budgeting for Retiring in Israel

For some Olim, getting off the plane in Israel the phrase “Toto, I’ve a feeling we’re not in Kansas anymore.” might come to mind. It takes some getting used to, but living in a retirement community, close to other English speakers can really help in your initial period.

For Americans walking the aisles of a supermarket, they might be surprised at the difference in prices on many food items. For an Israeli visiting the USA, they will also likely be shocked by the high cost of items such as cell phone plans and education.

In order to prepare for the transition, you might want to start looking at typical prices of fixed costs that you will have once you choose a place to live in. The numbers below are constantly changing and for estimation only. Prices on some items outside of the center are different than the center.

ITEMDetails
RentRent varies by city, neighborhood and size of apartment.

Anywhere from 3,500₪ to 8,000₪
Arnona (municipal taxes)Depends on city, zones and size of apartment. Below are very rough numbers:
350 ₪ - 800 ₪ They do not include the discount for Olim that is given the first year.
Vaad Bayit (condo fee)Ranges from 250 ₪ to 450 ₪
ElectricityAveraged out over a year, electricity can cost from 500 ₪ per month. It will depend on apartment size and if heat is electric or another type and if AC is needed
Water65 ₪ - 140 ₪
Gas50 ₪ - 60 ₪
Internet/TVDepends on speed and services purchased (landline phone, internet, TV) anywhere from 150 to 350 ₪ per month
InsuranceInsurance depends on the value of the apartment, riders, contents and choice of extra coverage for leaks, earthquake (5% or 10% deductible) etc. For an apartment valued at 1.5, expect to pay a minimum of 1,700 ₪ per year
Public transportationUse the Rav Kav system and as a retiree (see the definition) you pay half of the going rate. When you reach the age of 75, public transportation is free.
Buying a carA 3-year-old used car starts at about 40,000 ₪