Israel Long-Term Savings Hit Record 3.3 Trillion NIS as Market Returns Soar

The pace of deposits into long-term savings in Israel continues to rise, with institutional bodies managing significantly more capital than in the past. In 2025, the public deposited a record 219 billion NIS into long-term savings accounts, including pension funds, executive insurance, savings policies, and provident funds (including investment provident funds, savings for every child, and study funds), according to the annual report of the Commissioner of the Capital Market, Insurance and Savings Authority.

This represents a new record and a 12.3% increase compared to 2024. This is also the first time that annual public deposits have crossed the 200 billion NIS threshold.

Breakdown of Savings and Withdrawals

A closer look at the figures reveals the distribution of the new deposits:

• Pension funds: 91 billion NIS

• Study funds (Kranot Hishtalmut): 39 billion NIS

• Savings policies: 34 billion NIS

• Investment provident funds: 19 billion NIS

Conversely, the volume of withdrawals also continues to rise, increasing by 9.8% last year to reach 155 billion NIS. This left a net positive gap of 64 billion NIS in new capital remaining within the institutional bodies.

In a departure from previous trends, the rate of withdrawals from study funds actually decreased by 6% to 20.1 billion NIS, despite the massive growth in total assets.

Ultimately, the public's long-term savings assets surged by 16% to reach 3.3 trillion NIS, representing an enormous single-year increase of 450 billion NIS. The primary driver behind this growth was the strong performance of the financial markets, which translated into exceptional annual returns of 15% in the general track and 25% in the equity track.

This surge in public assets directly boosted the financial reports of insurance companies and investment houses, which benefit from higher management fees as their assets under management (AUM) grow. These financial institutions enjoy "operating leverage," as they do not need to expand their workforce in proportion to their asset growth. Consequently, a larger share of revenues flows directly to the bottom line, driving up both profits and stock prices.

Management Fees and Agent Commissions

Management fees experienced a slight decline. According to the Authority, pension management fees on deposits decreased by 0.03% to 1.54%, while management fees on accumulated assets remained stable at 0.15%. In provident and study funds, the average management fee on accumulated assets stood at 0.53% (with no fees charged on deposits).

Insurance agents have also emerged as major beneficiaries of this growth. The number of licensed agents grew by 3.5% over the past year to 13,400 (of whom only 410 are pension advisors). The Authority attributes this to high profitability in the pension agency sector.

Commissions paid to insurance agents jumped by an additional 10% last year, reaching 13.2 billion NIS annually—an increase of 1.2 billion NIS. Since the COVID-19 pandemic in 2020, agent commissions have surged by 46%.

According to the data, 43% of insurance agents earn up to 250,000 NIS annually, 24% earn up to 500,000 NIS, 20% earn up to 1 million NIS, and 13% earn over 1 million NIS per year.

Regulatory Perspective

Amit Gal, the Commissioner of the Capital Market, Insurance and Savings Authority, stated:

"The long-term savings and insurance system in Israel has undergone profound changes in recent decades. From financial entities traditionally focused on managing public funds and securing insurance coverage, institutional bodies have become central players in the Israeli economy. The volume of assets they manage, their influence on the capital market, and their growing involvement in financing the needs of the economy and corporations place them at the heart of the financial and economic system."

He added that such significant financial power requires responsibility and balance, emphasizing the growing importance of high-quality corporate governance to ensure these entities continue to act primarily as professional investors managing savers' long-term funds.