Pension advice at the bank – just how much will it cost and to whom? The savers’ pension portfolio is usually managed by an insurance agent. When pension counseling is performed at the Bank, the pension portfolio actually goes to the bank.
Thus, the commissions received to date from the insurance agent out of your insurance providers and pension funds are transferred to the bank, and his income from your this links is dependant on this.
It was recently published that this average annual income from the Bank from each pension counseling client is NIS 900, an amount that through the years can accumulate to hundreds and hundreds of shekels, and also the numbers increase as the customer’s pension savings are greater.
Here is a numerical illustration of the cost that lies behind “free bank advice”: A pension fund member using a fixed monthly premium of NIS 2,000 a month (based on a monthly salary of NIS ten thousand) is predicted to pay the financial institution from age of 30 to age 67 a commission of approx. NIS 95 thousand.
Pension advice in the bank – what else is important to learn? The Bank can not establish any contact with the employer and manage the pension portfolio for that individual employee, rather than the insurance professional. As a result, there is absolutely no exploitation of economies of scale for that employer and the employee, and the employer actually added another “insurance agent” to himself, who is the bank’s pension advisor.
This addition only burdens operational and complicates the collection report. This is why banking institutions currently operate in a relatively small market share, handling very little managers insurance plans or some other insurance policies, and many with their customers are self-employed.
Therefore, customers who are interested in objective , professional and low-cost pension counseling should consult an unbiased pension counselor who collects a one-off fee for the consultant himself, and does not receive any commissions through the investment houses and the insurance providers.
Since January 2008, there is a mandatory deposit for many employees, beginning from the conclusion of 3 months of employment or six months of employment, according to whether or not the employee includes a pension plan or has reached a business without the pension savings.
In the event the employee has pension savings, then the employer will deposit the initial option retroactively, and in case the worker is employed towards the end of the season, then by December 31 of the year, whichever is earlier.
This case leaves the employer and employee relatively short time to do something on the matter. I have often heard of many employees who failed to report to the employer that they had a pension plan even though three months right away in the employment, or knew that they had but failed to know who the pension manufacturer was and did not come to a decision on svejpi identity of the pension producer.
Additionally, employees with complex plans who have not yet agreed with the insurance professional or perhaps met with him, but have not decided on the mix of their pension portfolio, have previously reached 90 days through the date of employment, nevertheless the employer will not know where to deposit.
In order to address this issue, default agreements were signed from the employer with one or some other pension manufacturer. Many employers, in particular those with higher turnover and turnover, used default agreements so that you can transmit lists of workers who had not even received a determination concerning the identity from the pensionary manufacturer, thereby complying with all the provisions from the extension order for compulsory pension.
These agreements, insofar because they were performed with the help of a professional entity, were with a service specification, so as the employees receive good quality service, in the accessibility from the marketers as well as in the professionalism in the pension marketing meetings that happened in each case right after the joining.