Provident funds are a well-established savings instrument that has undergone many revolutions and improvements over the years. Today, the provident funds constitute the basis of pension saving. The Country encourages investment in pension savings and has mandated them (Mandatory Pension Law), and grants tax benefits to people who save through provident funds.
Psagot Provident Funds manages provident funds by means of various investments at varying levels of risk. Each member can select the most suitable track for its purposes out of available tracks and change it at any time (subject to the law's provisions). Psagot excels in investment management on behalf of its provident fund members providing them with the security that is vital for managing their long term savings.
The advantages of investing in provident funds
• General advantages – a compensation based provident fund is a pension instrument for employees and the self-employed, which is based on continuous accumulation of a share of their monthly income designated for retirement.
• Advantages for the salaried worker – a salaried worker who deposits monies into a pension saving in a provident fund benefits from the salaried worker's participation in the saving and tax benefits for its deposits in a provident fund
• Advantages for the self-employed - a self-employed who deposits into the pension savings scheme is entitled to tax benefits on his deposits. Tax benefits are granted at the end of the year for deposits made each year from January 1 to December 31.
Psagot’s provident funds