Pension Calculator

This calculator answers the most important question in retirement planning: how much money you will have each month after you stop working. Enter your age, salary and seniority and receive an estimated monthly pension. The formula is transparent and explained below — Yesh Cash starts with understanding, not with a black box.

How to interpret the result

Will the pension be enough?

The measure to use is the replacement rate — your pension divided by your final salary. As a rule of thumb, 70% to 80% is needed to maintain your standard of living.

The pension gap

The pension gap is the difference between the pension you will receive and the one you will need. The earlier you identify it, the easier it is to close: increasing contributions, reducing management fees, adjusting the investment track, and adding supplementary saving all work better with time on your side.

The calculation formula

Step 1: accumulation. Contributions plus returns, less management fees and the cost of insurance cover, compounded across decades.

Step 2: the monthly pension equals the accumulation divided by the conversion coefficient (mekadem hamara).

The conversion coefficient is the number by which the accumulation is divided to produce the monthly pension. It expresses life expectancy and actuarial assumptions, and varies by age, sex, track and fund. A lower coefficient means a higher pension. For age 67 it sits at roughly 200. Older managers' insurance policies may carry a guaranteed coefficient, which can be extremely valuable.

What affects your pension

Management fees. A difference of 0.5% across a career changes the final accumulation by tens to hundreds of thousands of shekels.

Breaks in employment. Every month without a contribution costs not only the contribution itself but all the returns that money would have earned. Unpaid leave, unemployment, study periods and time caring for children all create holes in the accumulation that compound over time.

Five immediate actions to increase your pension

Negotiate your management fees; match the investment track to your age; increase your contribution rate; consolidate lost accounts through Har HaKesef; and add supplementary saving alongside the pension.