Pension funds are complicated, but after reading this article, you’ll know more about them than 90% of the people around you.<\/p>\n
A pension fund has three purposes:
\nSaving for retirement. No one wants to work until they die, after all.
\nDisability insurance. If you are permanently injured or otherwise become unable to work due to disability, your pension fund covers you.
\nResidual insurance. Residual insurance is a form of life insurance, and your pension fund can be used for payments of this type as well. In the event of your death before retirement, your pension fund will be used to make monthly payments to your spouse until their death, as well as to your children until they reach age 21.<\/p>\n
Pension funds are built with a mutual guarantee mechanism. What does this mean?
\nWhen money is added to a pension fund, it is divided between two internal funds, one for insurance, and one for retirement savings. If the money being deposited in the insurance fund is not enough to cover insurance payments, then the shortfall is made up by taking a small percentage of the retirement savings. This mechanism is called actuarial balance. In some cases, this balance is negative, up to 0.3% per year, but in other cases it is positive, which means that money from the insurance fund will be moved to the retirement fund.<\/p>\n
How much money will you get from your pension fund at retirement or when the insurance pays out?
\nThe pension depends on how much you saved, so it is important to choose a pension fund with a high return on investment and low management fees. Insurance payouts for death or disability are tied to your salary.<\/p>\n
To maximize your retirement savings and insurance benefits, meet with your insurance agent on a regular basis, at least once every few years, to check on your accounts.<\/p>\n
Do you want professional pension planning and management? We’d love to help you out. Contact us with the form below, and we’ll get back to you.<\/p>\n","protected":false},"excerpt":{"rendered":"
Pension funds are complicated, but after reading this article, you’ll know more about them than 90% of the people around you.<\/p>\n
A pension fund is a savings fund with three types of benefits:<\/p>\n
Retirement savings: No one wants to work until they die, after all.
\nDisability insurance: If you become unable to work due to permanent injury or disability, this covers you.
\nResidual insurance: In the event of your death, this insurance will make monthly payments to your spouse for the rest of their life, and to your children until they reach age 21.<\/p>\n","protected":false},"author":3,"featured_media":2175,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[32],"tags":[30],"class_list":["post-2537","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pensions","tag-attached-to-the-main-page"],"_links":{"self":[{"href":"https:\/\/sbit.co.il\/en\/wp-json\/wp\/v2\/posts\/2537","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sbit.co.il\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sbit.co.il\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sbit.co.il\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/sbit.co.il\/en\/wp-json\/wp\/v2\/comments?post=2537"}],"version-history":[{"count":2,"href":"https:\/\/sbit.co.il\/en\/wp-json\/wp\/v2\/posts\/2537\/revisions"}],"predecessor-version":[{"id":2539,"href":"https:\/\/sbit.co.il\/en\/wp-json\/wp\/v2\/posts\/2537\/revisions\/2539"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sbit.co.il\/en\/wp-json\/wp\/v2\/media\/2175"}],"wp:attachment":[{"href":"https:\/\/sbit.co.il\/en\/wp-json\/wp\/v2\/media?parent=2537"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sbit.co.il\/en\/wp-json\/wp\/v2\/categories?post=2537"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sbit.co.il\/en\/wp-json\/wp\/v2\/tags?post=2537"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}