Pension advice at the bank – exactly how much does it cost and to whom? The savers’ pension portfolio is normally managed by an insurance agent. When pension counseling is carried out at the Bank, the pension portfolio actually goes to the bank.
Thus, the commissions received to date by the insurance agent from your insurance firms and pension funds are moved to the bank, and his income from your this article is founded on this.
It was recently published that this average annual income of the Bank from each pension counseling client is NIS 900, an amount that over the years can accumulate to tens of thousands of shekels, and also the numbers increase since the customer’s pension savings are greater.
Here is a numerical demonstration of the price that lies behind “free bank advice”: A pension fund member with a fixed monthly premium of NIS 2,000 per month (according to a monthly salary of NIS ten thousand) is predicted to pay the lender from age 30 to age 67 a commission of approx. NIS 95 thousand.
Pension advice in the bank – what else is very important to find out? The Lender can not establish any exposure to the business and manage the pension portfolio for the individual employee, instead of the insurance broker. Because of this, there is not any exploitation of economies of scale for the employer as well as the employee, and the employer actually added another “insurance professional” to himself, who may be the bank’s pension advisor.
This addition only burdens operational and complicates the collection report. This is the reason banking institutions currently operate in a relatively small market share, handling hardly any managers insurance plans or other insurance policies, and most of the customers are self-employed.
Therefore, customers who have an interest in objective , professional and low-cost pension counseling should consult an unbiased pension counselor who collects a 1-off fee for that consultant himself, and will not receive any commissions from the investment houses and also the insurance companies.
Since January 2008, you will find a mandatory deposit for those employees, starting from the final of three months of employment or 6 months of employment, according to if the employee has a pension plan or has reached a business without any pension savings.
If the employee has pension savings, then your employer will deposit the initial option retroactively, and in case the staff member is employed right at the end of the season, then by December 31 of this year, whichever is earlier.
This example leaves the business and employee relatively short period of time to act on the matter. I have often heard about many employees who failed to report to the employer they had a pension plan even though 90 days right away in the employment, or knew they had but did not know who the pension manufacturer was and failed to decide on svejpi identity of the pension producer.
In addition, employees with complex plans which have not agreed with the insurance professional as well as met with him, but have not decided on the combination of their pension portfolio, have previously reached 3 months from your date of employment, but the employer fails to know where you can deposit.
In order to address this issue, default agreements were signed by the employer with one or any other pension manufacturer. Many employers, particularly those with higher turnover and turnover, used default agreements in order to transmit lists of workers who had not received a decision regarding the identity from the pensionary manufacturer, thereby complying with the provisions in the extension order for compulsory pension.
These agreements, insofar as they were performed with the assistance of an expert entity, were accompanied by a service specification, in order that this employees receive top quality service, in the accessibility of the marketers and in the professionalism of the pension marketing meetings that happened in each case following the joining.