Training Fund

75% of the deposit usually comes from the employer, profits on preferred deposits enjoy tax exemption, and the money becomes liquid after six years. Anyone who leaves the fund to work for another decade may discover that the amount received from the employer and compound interest have turned it into one of their largest assets.

A training fund (Keren Hishtalmut) offers particularly advantageous tax benefits, but they are subject to an annual deposit ceiling of about 20.5 thousand shekels. However, it sometimes has hidden advantages that make depositing even larger sums particularly worthwhile. Retirement experts answer critical questions about retirement in a new column.