Have you received a letter, text message or email from the insurance company regarding the consolidation of pension funds?
Have you received a phone call from the insurance company trying to persuade you to refuse to consolidate the accounts in the pension funds?
What to do? Here are five tips on the subject:
- Understand the move to consolidate accounts – this move initiated by the Ministry of Finance is intended to concentrate all your pension funds scattered in different funds, in one place. The move is automatic and does not require active action by you. Read more about the move to consolidate accounts.
- Understand why the insurance company sends letters, emails and text messages – the insurance companies that manage pension savings are obligated to send savers a letter on the subject. The letter includes information that your pension savings details are transferred to the database of the Insurance Commissioner at the Ministry of Finance.
- Automatic account consolidation The account consolidation process is optimal for you – its purpose is to take care of you, the retirement saver. Note! If you do nothing, your accounts will be automatically consolidated.
- Updating investment tracks and beneficiaries – choosing another insurance company, negotiating management fees, choosing an investment track that is more appropriate for age and situation, will be easily possible after the consolidation. The update will be done in one place with one insurance company.
- Do not refuse the consolidation – in addition to letters and notices regarding the move, you may be contacted by the company managing your inactive pension fund, in order to keep you as a customer of the company. The company will offer you to refuse the union and may even offer you a benefit. The proposed benefit is not a good enough reason to refuse the consolidation process.
Please note that the information and answers provided are general and partial only and are not intended to replace professional personal advice, based on the applicant’s personal data. If you decide to act on the basis of this information, you bear full and exclusive responsibility for your action and its results, and there will be no responsibility for the organization of Paamonim or anyone acting on its behalf.
