A pension fund is an instrument that includes, in addition to the retirement savings element, coverage in the event of death (Survivors Pension) and in case of disability or loss of working capacity (Disability Pension). Survivors and Disability coverages are conducted with a mutual guarantee of all fund members (partners); this is unlike Management Insurance, which constitutes a personal contract, and the insurance company provides the insurance coverages.
Risk management by mutual guarantee of the members lowers membership costs in the Pension Fund, along with the risk or chance of demographic structure return.
What does a Pension Fund include?
Advantages of Pension Funds
Flexibility in choosing the insurance routes, while adapting them to customers’ needs
Flexibility in choosing old-age pension tracks upon retirement, in accordance with each client’s personal situation and preferences.
Low costs of survivor and disability coverages compared to Management Insurance
Diverse investment avenues available for each member to choose (depending on what is offered in each fund)
30% of the money accrued in the fund is invested in designated, index-linked bonds with a guaranteed interest rate of 4.8% per year.
“Betach Toren” insurance agency markets the leading pension funds in the industry and pairs each client with a pension savings plan that considers current salary, needs and future plans.
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