Management Fees Calculator

How much are management fees really costing you? Compare current fees to reduced ones and see how much you'd save.

A management fee calculator lets you see exactly how much your pension or investment fees will cost you over your lifetime. In a system like Israel's where fees are charged both on contributions and on your total balance, the math is not intuitive — a calculator makes the invisible visible.

What the Calculator Shows You

Enter your current pension balance, monthly contribution, the percentage fee on your balance, the percentage fee on your contributions, your expected annual return, and the number of years until retirement. The calculator will show your projected balance with current fees versus what you would have with lower fees. The gap is your fee cost.

Why Two Fee Types Make It Complicated

Israel's dual-fee structure — a percentage of contributions plus a percentage of your accumulated balance — means you cannot simply compare one number. Early in your career the contribution fee matters most because your balance is small. Later the balance fee dominates because it compounds against a much larger sum.

Real-World Example

A 30-year-old earning 12,000 NIS per month who reduces balance fees from 0.5% to 0.2% and contribution fees from 4% to 1.5% could save over 300,000 NIS by retirement age 67. That is the equivalent of several extra years of pension payments.

Take Action With Your Results

Once you see the numbers, contact your pension provider and negotiate. If they will not match competitive rates, switch providers. The transfer is free by law in Israel and takes only a few weeks. Use this calculator as your negotiation tool.

TIP.exe

The information on this page is for educational purposes. Please consult a professional before making financial decisions.

Contact an advisor →

Frequently asked

+−What does a management fee calculator show me?

It compares your projected pension balance under your current fees versus lower fees, revealing the total cost of fees over your career. The gap between the two projections is the money you are losing to fees.

+−Why does Israel have two types of pension fees?

Israeli pension funds charge both a percentage of your contributions and a percentage of your total balance. Early in your career the contribution fee matters more; later the balance fee dominates as your savings grow.

+−How much can I save by reducing pension fees?

A 30-year-old earning 12,000 NIS per month who reduces balance fees from 0.5% to 0.2% and contribution fees from 4% to 1.5% could save over 300,000 NIS by retirement.

+−Should I focus on reducing the balance fee or the contribution fee?

Early in your career the contribution fee has more impact. As your balance grows, the balance fee becomes dominant. Ideally negotiate both, but prioritize the balance fee if you have significant accumulated savings.

+−Can I use the calculator for Hishtalmut fund fees too?

Yes, the same logic applies. Enter your Hishtalmut balance, monthly contribution, and fee rates to see how much fees cost you over the fund's six-year cycle and beyond.

+−What is the maximum fee a pension fund can charge in Israel?

By regulation, the cap is 0.5% per year on your accumulated balance and 6% on each monthly contribution. Most competitive funds charge well below these maximums.

+−How do I find my current fee rates?

Check your annual pension statement, log into your provider's website, or call their customer service line. The two fee rates — balance percentage and contribution percentage — must be disclosed clearly.