Meitav Provident and Pension

A popular savings product for the medium to long term, combining investment management by a team of capital market experts, with liquidity of funds and significant tax advantages such as tax deferral on profits and withdrawal as an annuity exempt from income tax starting at age 60. Annual investment ceiling for an individual saver: ILS 83,641 (as of 2026).

A locked savings account for the medium term (six years, or three if the money is used for education), with significant benefits for the employee. Salaried employees can contribute to the fund up to 2.5% of his gross salary monthly, while the employer can add up to 7.5% of the salary. The product offers a variety of investment tracks and savers do not pay tax on employer contributions upon withdrawal – and are also exempt from paying capital gains tax.

A study fund for the self-employed is a medium-term savings plan, locked for six years or three years if the money is intended for education. Depositing into the fund allows you, the self-employed, to enjoy two significant tax benefits: reducing income tax and national insurance payments upon deposit; and exemption from capital gains tax upon withdrawal of the money. The savings can be managed in one of a variety of investment tracks chosen by the savers.

The “Savings for Every Child” program, launched in 2017 by the Capital Market, Insurance and Savings Authority, is a national initiative to ensure basic savings for Israeli children. The National Insurance Institute deposits ILS 58 per month (as of January 1, 2026) for each child until they reach age 18. Parents can choose to add an additional ILS 58 from the child allowance to double the monthly deposit to ILS 116. Accounts not withdrawn by age 21 receive a grant of ILS 568.

This pension fund is managed with attractively low management fees, fixed for 10 years. The fund invests in a variety of investment tracks and pays a monthly annuity upon reaching retirement age. Additionally, it includes insurance coverage during the savings period, such as disability insurance and a survivors’ pension (in case of death).

A long-term savings channel aimed at generating savings for withdrawal as a monthly annuity or as a lump-sum amount in a one-time withdrawal. The money in the savings accounts is invested in a variety of investment tracks in the capital market, according to the needs and goals of each saver.

Amendment 190 allows depositing available money from a checking account, fixed-term deposits and investment portfolios into savings accounts. The money can be withdrawn from the savings after age 60 as a monthly annuity, exempt from tax; or in a one-time withdrawal, with a nominal tax payment of 15% on the proportionate profit component, compared to the ordinary 25% capital gains tax.

This fund is aimed at enabling the self-employed public, which constitutes about 12% of the Israel’s workforce, to accumulate pension savings despite employment instability, dependence on seasonal income and no entitlement to severance pay, which characterize the self-employed public.

The Israel Pension Fund, managed by Meitav, is open to self-employed workers as well. It offers particularly low management fees: 0.22% on the balance and 1% on monthly deposits, compared to tens of thousands of workers who still pay the maximum pension management fees – 0.5% on the balance and 6% on monthly deposits.