Management Fees Calculator
How much are management fees really costing you? Enter your details, then toggle the comparison to see how much you could save with reduced fees.
Pension Details
Results
Annual Breakdown
| Year | Balance (Current) | Fees Paid (Current) |
|---|---|---|
| 1 | 244,079 | 3,071 |
| 5 | 438,829 | 20,283 |
| 10 | 729,650 | 54,459 |
| 15 | 1,083,780 | 105,553 |
| 20 | 1,515,001 | 177,248 |
| 25 | 2,040,097 | 274,029 |
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How this calculator works
Israeli pension and provident-fund providers charge fees in two places. The deposit fee (דמי ניהול מהפקדה) is taken from every monthly contribution before it reaches the investment pool — capped by regulation at 6% but typically negotiated to 1-3% for new accounts in 2026. The savings fee (דמי ניהול מצבירה) is charged annually on the accumulated balance — capped at 0.5% for new pension funds and somewhere between 0.5% and 1.05% for older accounts and provident funds.
The simulation runs month by month for the full horizon. Each month we deduct the deposit fee from the contribution, add the net amount to the balance, apply 1/12 of the annual return, then deduct 1/12 of the annual savings fee. Yearly snapshots are saved for the growth chart. Comparing the "current" track against a "reduced" track shows how dramatically small percentage differences compound over 25-40 years — typically several hundred thousand shekels on a single career.
2026 assumptions: the regulatory ceiling is 6% on deposits and 0.5% on savings for new pension funds; older mid-2000s policies often sit at 1.05% savings fees. The chosen 5% default return is a long-run nominal average for an Israeli general-track pension fund (Maslul Klali) over the last two decades — not a guaranteed forward number.
What it does NOT calculate
- Insurance components inside pension funds (disability and survivor coverage), which carry their own cost — not the savings fee.
- Tax treatment at withdrawal (anuity tax credit, 35% on real capital gains for unrecognized portions).
- Provider differences in net returns — two funds with the same fee structure can produce different gross returns.
- Tikun 190 / IRA accounts, which have different fee structures.
- Inflation — figures are nominal. Use the inflation calculator separately for purchasing-power view.
Worked examples
Example 1 — 35-year-old, 30 years to retirement. Current balance ₪200,000, monthly contribution ₪3,000 (employee + employer + severance), 5% nominal return. At 1.05% savings / 2% deposit (typical legacy account): final balance ≈ ₪3.4M. At 0.3% savings / 0% deposit (negotiated terms): ≈ ₪4.2M. Difference: roughly ₪800K — that is the cost of doing nothing.
Example 2 — 50-year-old, 17 years to retirement. Balance ₪650,000, monthly ₪4,000, same 5% return. Switching from 1.0% / 1.5% to 0.4% / 0.5% saves about ₪220K over 17 years. Smaller absolute difference, similar relative effect (~10%) — the lever loses some power the closer you are to retirement.
Example 3 — 28-year-old just starting. Balance ₪40,000, monthly ₪2,200, 35 years out. Moving from defaults to negotiated fees adds ₪500K+ to the final number. The earlier you switch, the larger the compounding gap.
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FAQ
What are the 2026 regulatory caps on pension fees?
For new comprehensive pension funds (kupat gemel l'kitzbah): 6% on deposits and 0.5% on accumulated savings. Older provident funds (kupot gemel) can charge up to 1.05% on savings. Most providers compete below the cap.
Where do I check what I am actually paying?
Use the Har HaKesef ("Mountain of Money") free government portal to see all your pension accounts and their fees in one place. The figures also appear on the quarterly statement (du"ach revoni) from each provider.
Can I just switch to a cheaper fund?
Yes — Israeli pension portability law (since 2008) lets you move accounts between providers without losing accrued rights. The new provider handles the transfer. The actual switch typically takes 4-8 weeks.
Should I always pick the lowest fee?
Not blindly. Net of fees matters more than gross fees. A fund with 0.3% fees and consistent underperformance can net less than a 0.6% fund with stronger track record. Compare net returns over 5-10 years, not raw fees alone.
How are deposit and savings fees different?
The deposit fee is a one-time haircut on each contribution. The savings fee is an annual percentage of the entire balance. Over time the savings fee dominates because the balance grows much larger than any single deposit.
What does the 5% default return represent?
It is a long-run nominal annual average for the general-track (klali) of Israeli pension funds in the last two decades. Actual returns are volatile — single years can be negative.
Sources & last updated
Fee caps from Capital Market, Insurance and Savings Authority regulations; balance and return data from Har HaKesef and Ministry of Finance pension fund reports. Updated for 2026 by the Yesh Cash Editor.