Maximizing Your Retirement Savings: A Guide to Taking Control of Your Pension Fund and Executive Insurance

2024-02-14 16:51:00

Photo: Pixabay

Most of us have a pension fund or at least old executive insurance, which usually lie like a stone untouched in the basements of one company or another. To ensure you get more money with less management fees, Sira Finance’s experts recommend being proactive with your retirement savings.

At the age of 42, Yossi suddenly discovered that he had an old and inactive managers’ insurance, which was gathering dust and not yielding a sufficient return. After this shocking discovery – which could significantly affect his pension funds in the future – Yossi decided to transfer the insurance to a new pension fund, with lower management fees and a higher return. Within half a year from the day of the move – Yossi’s pension savings added tens of percent to himself.

Wake up before it’s too late

A pension fund, executive insurance, a training fund or any other provident fund – are usually designed to provide us with a comfortable financial cushion; Whether it is for retirement, or for other needs in the present and the near future. The problem is that usually Most of us are unaware of the status or existence of these fundssome of which are even defined as “lost funds”, and how much money we deserve per order day.

Even those who are a little more aware of the subject of pension savings, do not always have the knowledge or the patience to dig a little deeper. And why should you dig? Because If we don’t have our finger on the pulsewe may find that we could get Much more money. Unfortunately, this usually happens too late in life, when it is more difficult to make a significant change in our situation. Although it is better to wake up at the age of 20, but even if we do it at the age of 40 we still have enough time to bring about the desired change in our favor.

“In order to improve our pension savings today, we must examine 2 main points,” they say At the Sira Finance insurance agency. “The first is the amount of the management fee that is charged to us for each savings, and the second is the annual percentage of return, which is derived from the various investment routes.”

The lower the management fee and the higher the return, so your money will work harder even when you sleep, and accumulate into respectable amounts. For example: every 0.1% reduction in management fees can be worth more than NIS 100,000 in aggregate to us. If we do not delve into the issue and demand changes – we will simply have to make do with less money.

so what are we doing?

First we need to check where all our savings are, and which ones are active and inactive. After that, you should check what the current accumulation is, as well as what the management fees and returns are on any such savings. If our situation is satisfactory, the amounts predicted for us will be enough and there is no reason to make changes – excellent. But if we discover exorbitant management fees, poor returns and low future amounts – it’s time to make a change, and as soon as possible.

One of the best ways to improve your conditions in a pension or any other provident fund, is to move it to a new channel. It could be a move between investment houses or insurance companies, or a move to an IRA channel that allows us to manage all of our retirement savings ourselves. In any case – mobility allows us to have much more control over our financial present and future.

What is mobile?

• pension funds
• training funds
• Executive insurance
• Other types of provident funds
• and more

Here it should be noted that there are specific mobility regulations regarding what can be moved where. for example, If it is basic mobility Between entities and investment houses, any savings can be transferred from one to the other without losing seniority and rights. However, If it is about moving to the track IRA under personal management – Only specific transfers can be made such as pension funds, one training fund to another as well as provident funds without investment funds.

How do you move?

Moving pension products between companies can also be done alone and easily. Simply contact the receiving company with the details of the relevant savings, and ask to transfer it to the new route, with the updated management fees and returns. This can usually be done digitally, or at most with a simple phone call.

On the other hand, moving to a personally managed provident fund (IRA) requires professional advice, because this channel does not include insurance coverages as exist in pensions or other channels intended for retirement royalties. So that you don’t miss important things, you should consult before moving.

Bottom line – moving pension savings puts the reins in your hands. From now on you will determine your financial future yourself, and that is certainly a welcome thing.