Quite a few articles have been devoted in recent years to the dismal pension situation that is expected of a large part of the public.
Some studies indicate that the pension that is expected of some members of the public will be small and will not be a good substitute for income in old age, and there are quite a few reasons for this - including withholding compensation and mismanagement.
In celebration of the seven holidays, we have prepared for you, together with Eyal Siani - VP of Quality Insurance and Finance, seven simple tips that may help you manage and increase your pension.
1.
Find out where your finances are.
A large part of the public does not know where their savings are.
Our ignorance and lack of management of our savings can lead us to a situation where one day we will find ourselves facing a broken trough.
Today, it is not necessary to invest a lot of time and money in locating our savings among dozens of entities, but this can also be done easily through the website of the Ministry of Finance's pension clearing house.
If this is complicated for you, you can contact a pension license holder who will do it for you.
2.
Choosing the best product for you.
In pension savings, there are several types of savings products (old pension funds, new pension funds, executive insurance, etc.), with each type of product having different and unique characteristics, which have a significant effect on the level of savings and benefits we receive, insurance coverage for us and our family and more.
Remember - there is no better product, there is a suitable product!
Examination of investment track
.
There are a variety of investment paths in the various savings products.
There are quite a few cases where the yield differentials between investment tracks are huge.
For example, an improvement of only 1% (from 4% to 5%) in yield over 25 years can increase your pension savings by close to 30%.
4.
Examine the management fee.
As is well known, management fees are one of the most influential factors in the level of our savings.
Do not be afraid to bargain - it's worth a lot of money.
In this context, it should be noted that there are four pension funds that are obliged, following a tender conducted by the Capital Market Authority, to offer discounted management fees for at least 10 years without the need to bargain with them.
5.
Start saving as early as possible.
Time is worth money, and a lot.
The age of entry into work in Israel is around 30, so in practice only from this age does the pension savings begin.
However, it is important to know that it is possible to save independently so that the money will work for us longer and the compound interest effect will have a greater impact.
For example, a person who starts depositing a monthly amount of NIS 500 at the age of 25 will add about NIS 600,000 to his pension savings.
On the other hand, if the said savings start at age 45, then the increase will be only about NIS 200,000.
6.
Trust yourself and your loved ones as required.
A new comprehensive pension fund includes insurance coverage in the event of death and disability.
The benefit that will be received in the event of an insurance event is affected by the percentage of the insured's insurance coverage.
It is important to know that the percentage of insurance coverage given to each insured in the fund is not necessarily the maximum, which means that you will "lose" a lot of money in case of death / disability controls, God forbid.
7.
Do not rush to withdraw the compensation.
The compensation money usually makes up about half of our total pension savings.
While we have the option to withdraw the funds after we have left the workplace, it is important not to be tempted unnecessarily as those funds can increase the pension we receive significantly.
Were we wrong?
Fixed!
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