Following the increase in life expectancy and the transfer of responsibility for pension savings to the individuals, academic and public interest in the ability of citizens to manage their savings until retirement age has increased. In Israel, all employees and employers have been required to save for their retirement since the beginning of 2008, but proper pension management requires decision-making, familiarity with basic concepts in economics, and understanding of the pension system and it is heavily influenced by regulatory activity.

Academic research worldwide examines the varied facets of the field of pensions as it develops, with the aim to improve the financial situation of savers and to help policy makers benefit savers. In keeping with these trends, the Center for the Study of Pensions, Insurance and Economic Psychology was established at Ben Gurion University, It is headed by Professor Avia Spivak (Economics), Professor Rami Yosef (Business Administration) and Professor David Leiser (Psychology). The Center fosters collaboration between researchers from the fields of economics, actuarial and economic psychology. It functions as an advisory body to policy makers and makes available the fruits of research at the Center and abroad, to promote understanding related to the characteristics and needs of the individual. It collaborates with leading bodies in the industry and works to systematically map the degree of understanding and the way in which financial bodies perceive consumers, and the way in which citizens perceive the financial world. It is the Center’s view that communication between financial entities, the administration, and individuals should be based on an understanding of the needs, capabilities and limitations of customers, and there is a need to coordinate expectations between citizens and financial institutions. The Center considers the issue of financial literacy to be essential to maintaining a healthier economic system. Misconceptions, lack of knowledge, irrational thinking and information overload are all barriers that are difficult to overcome, and much of our activity is dedicated to understanding these factors and trying to find ways to reduce these gaps, both on the part of savers and financial bodies. We believe that decision makers should also recognize the limitations of financial education The Center’s vision is to be the national crossroads of decision-making and academic research on pension insurance and economic psychology.

Our center provides consulting and research services to the public and private sectors and to NGOs. To date, the Center has established collaborations with the following organizations: The Capital Market, Insurance and Saving Authority, the Israel Securities Authority, the National Insurance Institute of Israel, the American Jewish Joint Distribution Committee (JDC), the Ministry for Social Equality, the Israel Consumer Council,

the NGOs Yedidim for Youth & Society and Paamonim, Migdal Makefet pension fund, and Psagot Investment House.