Working past 70: Insights into employment in the third age

In Israel, the workforce of nearly 5 million people is far from a homogeneous block, and analyzing the differences between segments offers deep insights into the labor market. In the coming months, we will publish a series of analyses in Globes by the company Hilan, based on data from hundreds of thousands of employees across various sectors. These findings are intended to assist employers in shaping their human resources policies.

Israel’s employment rate for older workers is among the highest in the developed world. According to the Shoresh Institution, approximately 28% of men and 15% of women over 65 remain in the workforce, significantly higher than the OECD averages of 21% and 11%, respectively. This trend is driven by high life expectancy, the cost of living, and pension contribution gaps affecting parts of the older generation.

New data from Hilan Value, covering tens of thousands of employees in large corporations, provides a first-of-its-kind map of workers who remain employed past retirement age. The data shows that most are long-term veterans, with a significant concentration in security, education, and transportation, and the vast majority are men.

Working at 70: Stability over adventure

While many workers retire shortly after reaching the official age (67 for men, 62 for women), the presence of men in the 70+ age group is particularly notable. Over 58% of men who have passed retirement age continue to work after 70, compared to only 29% of women. It is possible that for men of the "older generation," the professional sphere is so central to their identity that leaving it is more challenging.

Most older workers are veterans in their roles: at least 70% have 10 or more years of seniority, while only 13% have five years or less. This suggests that employees reaching retirement age prefer to contribute their experience in familiar environments rather than seeking new professional "adventures" that would require significant re-adaptation.

Sectoral trends

Hilan’s data highlights a sharp divide between sectors. In the security, nursing, and manpower sector, 31% of employees are 65 or older. This is followed by education and academia (16%), where seniority is often a primary factor in salary determination, providing a strong incentive for older workers to stay on, regardless of performance fluctuations.

At the bottom of the list is the high-tech sector, with only 4% of workers aged 65 and older. While the industry is "aging" and the old stereotype that there is no place for workers over 40 is fading, the share of older employees remains low.

Experience as a business asset

"The data shows that the debate over retirement age is becoming less relevant," says Prof. Asaf Avrahami, CEO of Hilan Value. "The real question is whether organizations know how to leverage one of their most expensive resources: experienced workers. The fact that 70% of 'third age' employees stay where they have accumulated over a decade of experience proves they are not just labor, but carriers of organizational knowledge."

Avrahami notes that the research refutes the perception of older workers as a "burden." Employers rarely fire them, and most departures occur through natural retirement. In a world where recruiting quality talent is difficult, experience is a vital business asset.

Regarding the impact of artificial intelligence, Avrahami concludes: "Those who know how to integrate older workers with AI tools will not only extend their careers but also boost organizational productivity. In the AI era, experience becomes a compass. As technology automates more tasks, the value of those who know how to ask the right questions and make informed decisions only increases."