Cutting-edge social finance to reduce loneliness & social isolation for the elderly
Improving well-being for a growing ageing population and tackling one of the biggest urban challenges today
Tel Aviv has the second largest population of over 65’s in Israel, a country with an above-average prevalence of loneliness. Loneliness among the elderly significantly impairs their quality of life, and has shown to have an adverse effect on both physical and mental health. Elderly people present with significantly higher rates of clinical depression and dementia, and a greater need for residential and medical care.
Consequently, loneliness among the elderly takes a considerable financial toll on public sector resources. And a growing ageing population due to the retirement of “baby boomers” and the increase in life expectancy creates a major new social and economic challenge.
Social Finance Israel is working with private investors, the Municipality of Tel Aviv-Yafo and The Tel Aviv Foundation to develop the first Social Impact Bond in Israel aimed at reducing loneliness and social isolation. Social Impact Bonds (also commonly referred to as “pay for success” partnerships) are innovative financial instruments that utilizes capital from private investors to fund prevention programs and improve social outcomes.
This program will be run by a service provider which specializes in the field of loneliness and the elderly. It will offer a mix of digital and face-to-face experiences to connect elderly people with social and support services in their community. It aims to reduce loneliness and social isolation by 20% for elderly residents over 12 months.
As part of the Social Impact Bond, The Tel Aviv Foundation is seeking a donation of $445,000 towards the outcome payment following a successful program.