Just as we take care of our daily life and that of our family, so we should also take care of our future (Photo: ShutterStock)
You obviously know that retirement is an important thing, and sometimes, there are those who may say to themselves, just not now, you are still young and there is still time until retirement age.
Your pension savings are significant savings that you will save throughout your life, so it is important that you ask yourself if you know what it includes, how knowledgeable you are about the amounts you deposit every month, and what will happen if you suddenly lose, God forbid, the ability to work due to illness or an accident.
Can you continue to take care of your family?
And if you have a child and want to extend your maternity leave, how will this affect your pension savings?
Don't wait for retirement, and turn now to pension advice for you and your family (Photo: ShutterStock)
The future seems to us still far away and depends on a lot of changes, therefore there are those who may concentrate on the 'here and now'.
But just as we take care of our daily life and that of our family, so we should also take care of our future. Below are some common sayings on the subject of pension savings and tips
on what is important to pay attention to:
1. "I don't need to worry about my pension now, I have a lot of time until retirement"
Now is the time to take care of your retirement savings.
The value of every shekel you save now may increase significantly when you reach retirement age, the compound interest effect makes the money saved for retirement at a young age be worth much more to us at retirement age.
2. "I can't choose where I save, my employer chose for me and I know he will take care of me"
By law, you have the right to choose the company that will manage your pension savings, the plan(s) in which you want to deposit your pension savings, and the advisor with whom you want to consult regarding your pension savings, so that even if the employer has chosen a certain fund for all employees, you can choose otherwise.
It is important that you know that the employer cannot refuse to deposit his share into the fund you have chosen.
3. "I know that my employer deposits me certain percentages of the salary, but I don't really understand how much and how it works"
The amount that is deposited into a pension plan is derived from the insured salary, the same salary that is used for the calculation The compensation. It includes the fixed salary components, from the salary a percentage of salary is deposited every month for rewards and compensation and there is a mandatory pension law that requires employers to also deposit for pension savings for their employees. The amounts set aside can be seen on the payslip.
Edna Naaman (Photo: Public Relations)
4. "If I lose the ability to work due to illness or an accident or God forbid, I don't know what my income will be"
When we think about a pension fund, we think about the savings for retirement and the monthly pension we will receive, but the pension fund also includes two very important insurance coverages:
insurance in case of loss of working capacity and insurance in case of death, God forbid.
In the event of a loss of work capacity, it is possible to receive, according to the chosen route, up to 75% of the insured salary as monthly compensation, and in addition, the fund will continue to deposit for the insured the monthly deposit that was deposited before the case of disability. In the event of death, God forbid, the pension fund will pay a monthly allowance to the spouse and children
until Age 21 (survivor insurance).
5. "I really want to continue being with my child on maternity leave beyond what the law allows.
What are the implications and consequences for my pension savings and should I consider continuing to deposit myself into the pension plans"?
During maternity leave, the mother is entitled to maternity benefits from the National Insurance for a period of 15 weeks, and during this period the employer must continue to deposit into the pension fund.
In addition, the pension fund has insurance coverage in case of loss of working capacity and death.
In case of termination of deposits, these covers are kept valid for a period of 5 months only.
In the event that the maternity leave is extended beyond that, a situation may arise in which the woman will lose the insurance coverage in the pension fund and moreover, she may lose all the insurance seniority she has accumulated during the years of savings.
In order to maintain the insurance coverage, you can maintain the insurance coverage.
In addition, during this period you can also continue to deposit independently in order to maintain your pension savings, every shekel you save today may increase it significantly in retirement.
Correct management of pension savings today, done with the aim of enabling peace of mind in the future (Photo: ShutterStock)
In conclusion, proper management of pension savings today is done with the aim of allowing peace of mind in the future.
This also requires making adjustments to it from time to time according to life junctures and the decisions you need to make along the way, according to your unique needs.
Don't wait for retirement, and turn now to pension advice for you and your family.
Clarification: The bank is not a tax consultant.
The above is only general information and explanation, as of the date of its publication, which does not constitute pension advice, investment advice or tax advice, and is not a substitute for personal advice that takes into account the special needs of each person.
Pension counseling will be given subject to the bank's conditions.
Pension counseling for retirement involves a fee as detailed in the bank's tariff.
This does not constitute a commitment to save any amount.
In cooperation with Bank Hapoalim
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