Technical Error Understates Savings Plan Profits by 5.6 Billion Shekels

The National Insurance Institute revealed a technical error in the 2025 annual report of the "Savings for Every Child" program, which understated the accumulated profits. The report initially showed profits of 3.25 billion shekels since the program's launch in 2017, but after review, the correct figure is 8.85 billion shekels. Specifically, Altshuler Shaham's profits were reported as 80 million shekels but are actually 4.08 billion shekels, and Harel's profits are 1.65 billion shekels rather than 649 million shekels. The error was solely in data presentation, not in the actual savings amounts, and corrected figures have been updated on the National Insurance Institute's website.

The report also noted a shift in account management during the past year, with 98,000 bank accounts closed and new deposits redirected to provident funds managed by insurance companies and investment houses. By the end of 2025, only 16% of accounts will be managed by banks, down from previous levels, while 84% will be managed by provident funds. Among new accounts, approximately 95% were opened in provident funds and only 5% in banks.