How to read the fees in your pension annual report

Once a year your pension fund sends you an annual report. It is long, but a few lines in it affect your savings for decades: the management fees. Pension, provident and study funds are supervised by the Capital Market, Insurance and Savings Authority.

The two fees

In a pension fund you usually pay two kinds of management fee:

• A fee on deposits: a percentage taken from each monthly deposit before it is invested.
• A fee on savings (accumulation): a percentage a year of the money already saved.

Both matter. Over many years, a small difference in the fee on savings can make a large difference to the final amount, because it is charged on a balance that keeps growing.

Where to find them in the report

Look for the section that lists the management fees you were charged during the year. It usually shows:

• the fee rates that apply to you, on deposits and on savings,
• the amounts actually charged during the year,
• the deposits made for you, and the balance at the end of the year.

Check that deposits arrived for every month you worked, and that the rates are the ones you agreed to.

Compare with official data

• Pensyanet publishes data on pension funds, including returns and average fees.
• Gemelnet does the same for provident funds and study funds.

Compare like with like: the same type of fund and a similar investment track.

If your fees look high

1. Ask your fund for a lower fee. Funds can agree to lower rates.
2. Check whether your employer has an agreement with a fund at lower rates.
3. Before moving to another fund, check what you would gain and lose, including insurance cover. For personal pension advice, speak to a licensed pension adviser.

Forgotten funds

If you have had several jobs, you may have more than one fund. Search for inactive savings in Har HaKesef, and ask your funds about merging accounts.

How Woofi fits in

Woofi keeps your pension documents together and shows the balances you entered or uploaded. It does not compare funds or tell you which fund to choose: that is personal advice, which comes only from a licensed adviser.