Not exercising the right: In January 2017, the "Savings for Every Child" program was launched, which aims to ensure all Israeli children long-term savings that will be used by them at the age of 18 or 21 for various purposes and help them start as adults, but it turns out that in the past year Do not choose for their child a route to the savings plan.
As part of the program, NIS 52 is deposited monthly, in addition to the child allowance, from state funds transferred by the parents to a savings plan at a bank or provident funds.
The parents have the option of an additional deposit of NIS 52 of the child allowance money to which they are entitled, thus doubling the amount of the monthly deposit for savings and significantly influencing the amount that the child will receive in his adult life.
At present, the deposits are divided between 9 banks and 12 provident funds.
The parents who have chosen the provident funds can choose to transfer the savings between the various provident funds as well as between investment routes, but they cannot transfer them to the bank.
On the other hand, those who have chosen to open savings at the bank will be able to switch between different savings routes at the same bank, if they have chosen an exit station.
The law in this regard stipulates that they will not be able to transfer the savings between the various banks nor transfer to a provident fund.
From January 2021 to December 2021, funds were transferred to the savings plan in the total amount of NIS 2.935 billion.
This amount includes ongoing payments and payments made by the parents.
The total profit for children from the deposits in the savings plan in banks and provident funds, which were opened this year, amounted to NIS 3.78 million.
In total, NIS 15.2 billion has been transferred to the savings plans since the program opened.
In 2021, savings plans were opened for 177,603 children, with 112,432 being born that year.
Of these, for 65,740 (58%) a savings plan was chosen by their parents, and for 46,692 (42%) children a saving plan was chosen by the Social Security following the parents' non-choice.
However, the six-month selection period for the savings plan for children born in the second half of 2021 has not yet ended, so there are children for whom a plan has not yet been selected.
Meir Spiegler, Director General of the National Insurance Institute: "The non-involvement of parents unequivocally affects the level of savings that children will receive when they reach the age of 18 or 21. Choosing the right path for our loved ones is a very simple procedure, with no bureaucracy at all.
Investing a few minutes in the Social Security website can yield large sums for them in adulthood, and can ensure that gaps between populations are reduced.
Parental involvement is important and necessary for the future of their children. "
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