The romantic days when one would eagerly anticipate finding an envelope in their mailbox are long gone. Today, we know exactly what’s waiting: promotional flyers, bank letters, notifications from provident funds, and numerous letters from state authorities.
At this point, people can be divided into three groups: those who pile up unopened letters waiting for someone else to deal with them, those who open, glance at the documents, and toss them thinking, “It’s probably stored somewhere digitally,” and those who meticulously file every document in thick binders.
The mailbox isn’t the only place where annual reports accumulate; more and more of them arrive in our email inboxes. While it’s true that in the modern era, much information can be retrieved without keeping it, the effort required can be significant and unnecessary. The solution: organize paperwork in a smart and deliberate manner.
Smart Practices in Organizing Paperwork
Treat the family archive as an important information center regarding family management. It should be maintained according to clear and simple rules, followed consistently and responsibly. We recommend these basic guidelines:
- Sorting: Upon receiving a letter, decide whether the information requires action. If action is needed, such as payment or updating details, place it in a “documents to handle” spot. If no action is required, determine whether to keep the document. For assistance, refer to the table at the end of the article, which is recommended to print and keep. For example, upon receiving the monthly or bi-monthly electricity bill, ensure that the amount charged matches the bill.
- Filing: After sorting and handling the mail, file it systematically: by topics, and within each topic, by date. Again, refer to the table to allocate the appropriate retention time for each document.
- Discarding: Once a year, say in the second half of January, discard all documents that no longer need to be kept.
What If Most of My Bills Are Digital?
Many invoices and quarterly or annual reports can be received via email or through secure online portals. It’s advisable to save digital reports in an organized folder on your computer, reducing physical paperwork. This requires prior registration for email reports. Many organizations encourage this to save on mailing costs.
At the end of December 2017, a new directive from the Capital Market Authority stated that new savers and policyholders must choose how to receive the annual report: via SMS, email, or mail. The default for new members has changed, and if the institution has your email or mobile number, the annual report will be sent accordingly.
If you wish to manage all paperwork digitally, you can scan physical documents to the same folders (scanned copies are accepted in court as valid evidence), but it’s advisable to keep the original document as well.
The Table
To avoid overwhelming piles of documents and files, we’ve detailed in a worksheet which documents to keep, for what purpose, and for how long. Below is a recommendation for filing documents by topics (the Statute of Limitations sets a period of 7 years during which a citizen can claim financial rights or debt refunds).
Routine (Regular Expenses)
| Document Name | Retention Period | Purpose |
| Housing | ||
| Property Tax (Arnona) | 1 year back (some recommend 7 years) | Monitoring and proof of payment. If there’s an error in charges, refunds can be claimed for the past 7 years. |
| Water Bills | 1 year back (some recommend 7 years) | Monitoring and proof of payment. If there’s an error in charges, refunds can be claimed for the past 7 years. |
| Electricity Bills | 1 year back | Monitoring and proof of payment. |
| Gas Bills | 1 year back | Monitoring and proof of payment. |
| Homeowners Association Fees | 1 year back | Monitoring and proof of payment. |
| Communication | ||
| Mobile Service Contract | As long as connected to the provider. If switching companies, keep for an additional year in case of continued charges. | For clarification in case of overcharging. |
| Mobile Phone Bills | 1 year back | Monitoring and proof of payment. Comparative analysis between months. |
| Landline Phone Bills | 1 year back | Monitoring and proof of payment. |
| Internet Service Contract (Infrastructure and Service Provider) | As long as connected to the provider. If switching companies, keep for an additional year in case of continued charges. | For clarification in case of overcharging. |
| Internet Service Bills | 1 year back | Monitoring and proof of payment. |
| Cable/Satellite TV Contract | As long as connected to the provider. If switching companies, keep for an additional year in case of continued charges. | For clarification in case of overcharging. |
| Cable/Satellite TV Bills | 1 year back | Monitoring and proof of payment. |
| Subscriptions | ||
| Water Purifier Services (e.g., Tami 4) | 1 year back | Monitoring charges and subscription expiration. |
| Newspapers, Journals, Magazines | 1 year back | Monitoring charges and subscription expiration. |
| Library Memberships | 1 year back | Monitoring charges and subscription expiration. |
| Gym, Theater, etc. | 1 year back | Monitoring charges and subscription expiration. |
Vehicle
| Document Name | Retention Period | Purpose |
| Toll Road Bills (e.g., Highway 6) | 1 year back | Monitoring, verification, and proof of payment. |
| Annual Vehicle Registration (Test) | Until renewal | Keep in wallet. |
| Comprehensive or Third-Party Vehicle Insurance | Until renewal | If only a supplement is issued upon renewal, keep the basic policy. |
| Vehicle Manual/Repair Receipts | As long as the vehicle is in your possession | To prove maintenance and repairs when selling the vehicle. |
| Traffic Fines | 7 years back | Monitoring and proof of payment. After 7 years, the offense is statute-barred. |
| Parking Fines | Indefinitely | As long as notifications are sent periodically (less than three years apart), the penalties do not expire. |
| Accident Documentation | 7 years and/or until sale, whichever is later | Protection against claims. |
| Purchase/Sale Agreement | 7 years and/or until sale, whichever is later | Protection against claims. |
Banking, Loans, and Credit Cards
| Document Name | Retention Period | Purpose |
| Bank Account Opening Agreement | As long as the account is active. If closing the account, keep for an additional year in case of disputes. | For clarification in case of overcharging. |
| Credit Card Agreement | As long as the card is active. If canceling the card, keep for an additional year in case of continued charges. | For clarification in case of overcharging. |
| Bank Account Statements | 3 months (some recommend 7 years) | Regular monitoring of the bank account: cleared checks, paid bills, direct debits, etc. |
| Credit Card Statements | 3 months (some recommend 7 years) | Tracking purchases and standing order charges. It is advisable to keep for 7 years to prove payment to various authorities. |
| Checkbook stubs | Keep for one year (some recommend 7 years) | For tracking and proof of payment. |
| Loans (bank, credit card company, workplace, friends, etc.) | Keep until the repayment date | It is sufficient to keep the latest report |
| Documentation of bank account closure/credit card cancellation | Keep permanently |
Savings
| Document Name | Retention Period | Purpose |
| Agreement for Opening Investment Portfolio, Deposits, and Savings Plans (Short and Medium-Term Instruments) | Until redemption | To prove the terms. |
| Periodic Reports – Deposits and Savings Plans | Until redemption | it’s sufficient to keep the latest report. |
| Agreement for Joining Pension Fund, Manager’s Insurance, Provident Fund, Financial Insurance, Study Fund (Medium and Long-Term Financial Instruments) | Until redemption | To prove membership, terms, and beneficiaries. |
| Periodic Reports – Pension Fund and Manager’s Insurance | Keep the latest quarterly and annual reports until redemption. | It’s advisable to keep all reports from all years in case of disputes or payment issues. Retaining all annual reports until redemption is especially important in cases of fund transfers between tracks and insurance companies to prove continuity and eligibility. |
| Periodic Reports – Study Fund | Keep the latest quarterly and annual reports until redemption. | To prove eligibility. Retaining all annual reports until redemption is crucial, especially if contributions exceed the tax-benefit ceiling. |
| Periodic Reports – Provident Fund | Keep the latest quarterly and annual reports until redemption. To prove eligibility. | Retaining all annual reports until redemption is essential, especially in cases of fund transfers or track changes, to ensure continuity and maintain tax benefits and entitlements. |
| Periodic Reports – Investment Portfolio | Until the portfolio is closed | Regular monitoring of funds, investments, and fees. It’s advisable to keep all reports throughout the year until receiving a comprehensive annual summary from the bank (Form 867). |
It’s recommended to add a summary table that includes the savings account number, bank details, and member number.
Insurance
| Document Name | Retention Period | Purpose |
| Insurance Policies of Any Kind (Contents, Structure, Mortgage, Life, Disability, Financial Savings, Health, Long-Term Care, Dental) | Until the policy is canceled, renewed, or fully redeemed, whichever is later. | To prove coverage, terms, and beneficiaries. Some insurances retain eligibility even after the policy stops being paid (accumulated entitlement). |
| Payment Confirmation – Home Insurance (Contents, Structure) | Until policy renewal | To prove coverage and verify cost. |
| Periodic Reports – Mortgage Insurance (Life) | Until full repayment of the mortgage | To prove coverage and verify cost. |
| Periodic Reports – Life Insurance, Disability Insurance, Health, Long-Term Care, Dental | Keep the latest quarterly and annual reports as long as the policy is valid. It’s advisable to keep all reports from all years. Proof of regular premium payments is crucial in case of disputes during insurance claims. | |
| Private Health Insurance and Supplemental Health Insurance through the Health Fund | Keep the latest report as long as the policy is valid. | To prove eligibility. |
It’s recommended to add a summary table that includes the policy number, insurance company, type of insurance, and the insured’s name.
Employment
| Document Name | Retention Period | Purpose |
| Employment Contract | Until the termination of the employer-employee relationship with the employer. | The contract will serve as a legal basis in case of disputes. |
| Pay Slips | Two years (some recommend seven years) | In case of disputes between the employer and employee regarding salary. To verify social contributions and compare them with provident fund, pension fund, and study fund credits. Can be discarded only if Form 106s for those years are available. |
| Promotions and Bonuses | Attach to the employment contract and keep together | To verify future eligibility. |
| Form 106 | Indefinitely (some recommend seven years) | As proof of payment to National Insurance, for reporting to the Tax Authority if requested, for applying for tax refunds (after seven years, tax coordination or refunds cannot be requested), and to prove contributions to pension instruments. For those with a budgetary pension – until the start of the pension – to prove eligibility in case of disputes. |
| Employment Termination Documents (Form 161, 161A) | It’s advisable to keep until the start of receiving the pension. Even with approval from the Tax Authority, it may sometimes be required to prove the request for approval. | |
| Resume | Until updated | For quick submission as needed. |
Housing
| Document Name | Retention Period | Purpose |
| Apartment Rental Contract | Seven years | To protect rights to the property. |
| Apartment Lease Contract | As long as residing in the apartment | To monitor compliance with all contract terms and protect against claims. |
| Apartment Purchase/Sale Contract (including purchase tax payment confirmations) | Indefinitely | To prove ownership, payment, and tax accounting. |
| Land Registry Extract (Tabu) | Indefinitely | To prove entitlement to the property. |
| Mortgage | Until full repayment; it’s sufficient to keep the latest report. | |
| Receipts (Repairs, Renovations) | One year | Recognized expenses can be used for deductions when calculating capital gains tax. |
Taxes
| Document Name | Retention Period | Purpose |
| Income Tax – Capital Declaration | Indefinitely | The previous capital declaration will serve as a basis for preparing the new capital declaration. |
| Income Tax – Tax Coordination | End of the fiscal year; all accounting after the end of the fiscal year will be done through an annual report. | |
| Income Tax – Continuity Approvals | Until the start of receiving a pension or until redemption, whichever is later. | To prove eligibility for withdrawal conditions. |
| Income Tax – Tax Spread Approval | Seven years from the end of the spread period | To attach to the annual report. |
| National Insurance (Maternity Allowance, Grants, Pensions, Unemployment Benefits, etc.) | Seven years | To prove eligibility and monitor changes in pension amounts. |
| Agreements with Domestic Workers (Nanny, Housekeeper) | Seven years | Keep a document indicating the start date of employment and receipts signed by the worker confirming receipt of payments from the employer for convalescence pay, vacation pay, pension contributions, and severance pay. |
Education
| Document Name | Retention Period | Purpose |
| Payments to Educational Institutions, Trips, Classes, etc. | One year | To prove payment. |
Devices and Equipment
| Document Name | Retention Period | Purpose |
| Warranty Certificates | As long as the warranty is valid | it’s important to attach the purchase invoice to the certificates (it’s advisable to scan the invoices to the computer due to their tendency to fade over time). |
| Operation Manuals | As long as the devices are in use | In case of malfunction. |
Important Documents
| Document Name | Retention Period | Purpose |
| Birth Certificates | Indefinitely | Needed throughout life. |
| Graduation Certificates (Schools, Matriculation Certificate, Academic Studies, Courses, and Training) | Indefinitely | Needed on various occasions throughout life. |
| Prenuptial Agreement | As long as in a relationship | Regulates asset distribution in case of an event. |
| Will | Indefinitely | Required for obtaining a probate order after passing. |
| Health (A Separate Section for Each Family Member) | ||
| Document Name | Retention Period | Purpose |
| Diagnoses, Important Test Results, and Medical Records | Indefinitely | It is recommended to keep all medical documentation in case of a change in medical condition that requires treatment. |
| Vaccination Records | Indefinitely | Needed if considering vaccination due to an event. |
