The Minister of Finance, Avigdor Lieberman will make it possible to reduce the rate of management fees for pensioners

The Minister of Finance, Avigdor Lieberman, today (Tuesday) submitted an amendment to the Finance Committee for approval, which will make it possible to reduce the rate of management fees for pensioners. Under the proposal, the management fee to be paid by a retiree who begins to receive an old-age pension from pension funds or insurance policies will be at a rate not to exceed 0.3% per annum, compared to 0.5% today.
The Ministry of Finance notes that "following reforms made in the pension savings market in recent years, which have led to increased competition, we are witnessing a significant decrease in the average management fee rate actually paid by members during the savings period." 0.2% of the accrual. "
The Ministry of Finance adds that although "most members do not pay the maximum management fee set by the regulations, this change has not yet been reflected in the management fee paid by retirees, most of whom still pay the maximum management fee. The purpose of this move is to bring significant change and guaranteed Also for the retired public in Israel. "
Lieberman said that "the decision is another step in favor of the public of retiree savers in the State of Israel, which will lead to additional savings of hundreds and even thousands of shekels a year. The decision does justice to the senior citizens who worked and saved all the years.
Dr. Moshe Barkat, who is in charge of the Capital Market, Insurance and Savings Authority, added that "lowering the ceiling on management fees for pensioners is a complementary step to the default funds procedure, which stipulates that at retirement the maximum management fee will be 0.3% - which will lead to an increase in retirement benefits. ".