The Histadrut wants an urgent discussion on a “safety net” for pension savers


Following the negative double-digit yields recorded so far in March in pension savings in Israel, and which have already begun with single-digit declines recorded in February, today theHistadrut Head of the Finance Department, Shaul Meridor, and Head of the Capital Markets Authority, Dr. Moshe Barkat, Please discuss urgently the provision of a “safety net” for pension savings in Israel. In a letter sent today by the Histadrut, Arnon Bar David, regarding the “urgent need” to discuss providing minimal protection for pensioners and pensioners due to the Corona crisis.

The Histadrut seeks to give protection to all pension savings, even though, in their view, the most urgent is the one currently retired. You are a stranger because the balance of the same saver who is on the eve of retirement is being cut sharply these days, so that he will be leaving with a reduced pension. In addition, when he becomes his investment retiree, 60% is earmarked and only 40% free market, so even in the event of a quick fix in his rights markets will only be partially amended. That is, improving it will take a lot longer, if at all. It is further troubled by the Histadrut that there are the recipients of allowances in participating policies who are also immediately injured.

It can also be said that as the situation continues, such negative returns will affect the actuarial balance sheets of funds. In the new funds, this will also reduce the benefits for existing pensioners. In the old funds, this can also lead to a reduction in rights.

In addition, the Histadrut also wants to prevent hysteria like it was in 2008, so huge withdrawals were recorded, in which context explain that there is still a lot of liquid money in the camel (and training).
Earlier today, we reported that, according to a market estimate, from early March, pension savings lost about 12% to 15%, while the new comprehensive pension funds are likely to have only moderated declines thanks to the designated bonds (10% to 13% on average).

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