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Last update - 05:52 01/08/2008 U.S. retirees hit hard by dollar's fall By Raphael Ahren Tags: shekel, dollar, Israel, U.S. When Laura Sanderson fulfilled her lifelong dream of moving to Jerusalem she did not imagine that she would have to part from her grandmother's gold bracelet in order to make ends meet. Two years ago she asked her immigration counselor whether she would be able to live off her Social Security old-age allowance from the United States, which would be her sole income. "He said you'll get along fine," she recalled in a recent interview. "He didn't know the dollar was going down. Now it's a big squeeze." In addition to selling heirlooms such as the bracelet ("I was happy I had it because I needed the money"), Sanderson is now considering returning to the workforce at the age of 72. The downturn of the exchange rate, from over NIS 4.6 to the dollar in 2006 to only around NIS 3.4 now, has caused financial woes to many American companies and organizations who operate in Israel with budgets that are in the U.S. currency. But it also hurts immigrants from the U.S. who rely on dollar incomes. For retirees living off their Social Security benefits the pinch is particularly hard. "Up until not so long ago, immigrants were able to come with a fixed dollar income, even a reasonably low Social Security income, and enjoy a decent quality of life," said Josie Arbel, director of absorption services at the Association of Americans and Canadians in Israel (AACI). "That has definitely changed. There are people who are really struggling now." Advertisement So far there is no reports of Americans planning to return, but a number of potential immigrants are delaying their move because they don't want to sell their houses when the dollar is so weak, Arbel said. The rent squeeze Among the Americans already here, the number of complaints has risen in number and intensity. "The dollar slips so badly that I find it difficult to live on what is left," Ruth Krammer, an 80-year-old widow whose only income is a pension from the States, wrote in a letter to AACI. Krammer, who lives in a small community in the north, near Nahariya, told AngloFile that her landlord is a decent man but has now asked for a rent increase. "It is getting to the point where it is difficult for me to purchase food and cover my expenses," the letter continued. AACI granted her an emergency loan to deal with her immediate financial problems, Arbel said, adding that housing constitutes the biggest problem of the current dollar crunch: When landlords charge rent in shekels, Americans with a dollar income have less money in their pockets due to the drop in the exchange rate. Landlords who peg the rent to the dollar, on the other hand, are forced to raise the rent to cover their costs for utilities such as electricity and water, which are paid for in shekels. For most American immigrants, however, the situation is not yet drastic. Because only a relatively small group came to Israel with only their Social Security allowances, most can weather the storm, according to Alan Deutsch, an accountant specializing in Americans living in Israel. "They might have to cut down on some luxury items, they might go out less or not buy a new car, but the dollar is not yet crashing. Only if its descent continues for much longer it'll have a bigger impact," Deutsch said. Potential immigrants are advised not to rely exclusively on Social Security benefits, which are based on earnings averaged over a worker's lifetime. "It is very, very difficult to plan immigrating to Israel when your sole income is Social Security from North America," Daniel Oberman of the immigration advocacy group Nefesh B'Nefesh said. "We would seriously suggest that immigrants find alternative sources of financial support." But even those who did plan ahead are feeling the squeeze. Haim Lerner, for instance, who lived in New York and Montreal before moving to the Tel Aviv suburb of Ganei Tikva 10 years ago, receives money from four different sources: U.S. Social Security, Quebec Pension Plan, the Canadian Old Age Security and his own personal pension plan. Yet, the 74-year-old says he has been "very adversely" affected by the weak dollar. "I'm getting 3,000 shekels less than a year ago at this time," Lerner told AngloFile. Although he still receives about 8,000 NIS per months, the unfavorable exchange rate has affected his lifestyle. "I cut back on my activities such as trips and concerts, and I tried to cut back on my purchases in the supermarket," he said. "I don't eat as much steak as I used to." However, Lerner also noted that he is still not "poverty stricken" and that he cannot complain about the amount of money he does receive. Even Sanderson, who faces a $200 rent increase this August, doesn't despair. "I don't live high, but I certainly am not uncomfortable," said the 72-year-old, who lives alone in an old apartment that is bitterly cold during the winter because it cannot be heated properly. She noted that in the last two weeks the dollar increased slightly, from less than NIS 3.25 to almost NIS 3.5. "If the dollar went down any more, I'd be very uncomfortable. But I'm optimistic that it's going back up again," Sanderson said. Where to go Retired U.S. citizens who immigrated to Israel are entitled to Social Security benefits. Eligibility depends on a worker's age at the time of immigration, the number of years he or she was employed in the U.S. and other criteria. Following an agreement between Israel and the United States, these monthly payments are exempt from income tax. For more information contact: Social Security and Federal Benefits Unit of the United States Embassy 71 Hayarkon St., Tel Aviv (03) 519-7575 www.usembassy-israel.org.il Association of Americans and Canadians in Israel 11 Pinsker St., Jerusalem (02) 566-1181 www.aaci.org.il The Israel Association of Senior Citizens 12 Mendelstam St., Tel Aviv (03) 546-5457 www.sixtyplus.com. Bookmark to del.icio.us   Robbed in the war zone Two Haaretz journalists robbed by armed Russian troops in Georgian city of Gori. The Jewish Brad Pitt Hollywood star plays American-Jewish hillbilly in the latest Tarantino film.   1.   U.S. immigrants in Israel. 09:21  |  Maureen Ann 04/08/08   2.   U S retirees hit hard by dollar`s fall 12:30  |  Marlene 04/08/08   3.   Whats so special about the US? 13:13  |  JW 04/08/08   4.   Social Security was never meant to be your only income 03:43  |  Moshe 07/08/08   5.   8000 a month - good income 19:28  |  social worker 07/08/08   6.   living with exchange rates 16:19  |  noel 10/08/08   7.   noel - the problem is israel not anglos 13:32  |  social worker 15/08/08

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