Turning 60? Here’s How to Boost Your Monthly Net Income
Taking advantage of the financial benefits available to you can generate hundreds of thousands of shekels and increase the amount entering your bank account by thousands every month.
At age 60 and above, as income begins to decline and financial security becomes more central, significant opportunities open up.
Many people not only want to maintain their standard of living but also build assets that serve as income now and as an inheritance for the next generation.
Unfortunately, many simply don’t know what benefits they’re entitled to. The field is full of options, plans, tax breaks – and lots of confusion.
Those who don’t ask, lose out. And that’s a shame.
Even basic familiarity with your entitlements can change the game entirely – and bring in tens or even hundreds of thousands of shekels.
Case 1: Ruti, 67 – Five Lost Years of Pension
Ruti, a former public employee, didn’t process her “benefit lock-in” in time.
Only at age 67 did she realize that she could have started receiving her pension at 62.
Although the monthly pension would have been slightly lower, she would have enjoyed five additional years of income.
Total loss: About ₪200,000 – just due to lack of awareness.
Case 2: Roy, 65 – Profitable and Strategic Savings
Roy, a 65-year-old independent engineer, consulted with us on how to best leverage his financial options into something meaningful.
We recommended he begin a monthly contribution to a pension provident fund for two reasons:
- Contributions up to ₪43,000 per year are eligible for a 35% tax credit. That means for every shekel paid in income tax, you can get back up to 35% of what you deposited.
- Since it’s a pension-based fund, there’s no 25% capital gains tax on the earnings in either of the following:
- If you take the accumulated funds as a monthly pension
- Or if the money is passed on as inheritance
Roy began depositing ₪3,500 per month into the fund.
He received a monthly tax return of approximately ₪1,000 – making his net out-of-pocket investment only ₪2,500 per month.
Invested in an equity-based track with an average 8% annual return, after 10 years, the amount grew to ₪453,208.
At age 75, Roy chose to withdraw the money as a monthly pension for another 10 years, while it continued earning 7% annually.
💵 The result: • Monthly pension: ₪5,262 • Capital gain: ₪153,208 • Tax that should have been paid: ₪38,302 – but he paid nothing.
Roy also considered another option: to do nothing.
Not to deposit more – but also not to withdraw, leaving the money for another 10 years for inheritance.
At 7% annual returns, the amount would grow to ₪891,529.
💡 In summary: • Capital gain: ₪438,321 • Capital gains tax in a normal case: ₪109,580 – but in this case: zero • A net deposit of ₪2,500/month → an inheritance of nearly ₪500,000 for each of his two children. A solid sum that could serve as down payment on a home.
It’s important to emphasize that Roy didn’t need any special status to do this. Any citizen can benefit from these advantages. Annual deposits of up to ₪43,000 enjoy the tax benefits described here.
Case 3: Daniella – A Million Shekels Put to Work
Daniella, 64, had nearly ₪1,000,000 sitting idle in the bank.
With proper guidance, she invested it in a Best Invest plan for 5 years. She chose Best Invest for its key advantages:
- Her money was managed by major international financial firms – she chose BlackRock.
- Exposure to investments not available to private investors via the stock market, like income-producing real estate, infrastructure projects like Highway 6, and the Carmel tunnels.
- The ability to switch the managing investment house within 3 business days without triggering a taxable event.
After 5 years, her investment yielded an average return of 7% per year.
The amount grew to ₪1,402,552 – a profit of ₪402,552.
In a regular case: she would have paid ₪100,638 in capital gains tax 🎯 In this case – she paid nothing, thanks to investing through a pension fund.
Summary:
Whether you’re like Ruti, Roy, or Daniella –
Knowledge and professional advice can dramatically change your financial future. And that’s not a slogan – it’s a fact.
Segal Insurance & Finance, Ra’anana – experts in retirement, savings, and investment planning.
Want to know what financial benefits you’re entitled to? Click here to find out.
This one meeting could save you – or earn you – a great deal.
