Technical Error Understates Savings Plan Profits by 5.6 Billion Shekels
Translated & summarized from Calcalist by baba
A technical error in Israel's "Savings for Every Child" program report understated profits by 5.6 billion shekels, corrected to 8.85 billion shekels. The National Insurance Institute updated the data, showing a shift from bank accounts to provident funds for managing savings.
The story in 6 lines · by baba
- A technical error understated accumulated profits in the Savings for Every Child program by 5.6 billion shekels.
- Corrected total profits since 2017 are 8.85 billion shekels, not 3.25 billion as initially reported.
- Altshuler Shaham's profits were corrected from 80 million to 4.08 billion shekels.
- Harel's profits were corrected from 649 million to 1.65 billion shekels.
- By end of 2025, 84% of accounts will be managed by provident funds, down from banks' 16%.
- 98,000 bank accounts closed last year, with most new deposits going to provident funds.
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.
