National Insurance Urges Parents to Boost Child Savings to 120,000 Shekels
Israel's National Insurance Institute urges parents to double monthly contributions in the "Savings for Every Child" program, showing how smart investment choices can build over 120,000 shekels by age 21.
The National Insurance Institute has launched a campaign urging parents to review their children's savings under the "Savings for Every Child" program, highlighting how doubling monthly deposits can yield up to 116,000 shekels by adulthood.
Launched in January 2017, the program allocates a mandatory monthly deposit of 58 shekels per child, funded independently of family child allowances. Parents can choose to double this amount by contributing an additional 58 shekels monthly from their child allowance, a modification that can be adjusted or canceled at any time via the agency's portal.
Investment Pathways and Projected Yields
Data published by the National Insurance Institute details projected returns by age 21 based on historical averages across various risk profiles and financial institutions:
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High-risk provident funds: A 58 shekel monthly deposit yields approximately 63,178 shekels by age 21, while a doubled deposit of 116 shekels increases the projected sum to 122,639 shekels.
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Low-risk provident funds: A baseline deposit reaches 23,951 shekels, rising to 46,227 shekels with doubled monthly contributions.
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Bank savings plans: A standard deposit accumulates to roughly 21,000 shekels, whereas a doubled contribution reaches approximately 42,000 shekels.
These projections serve as estimates based on past yields rather than guaranteed returns. Parents who fail to select an active track within six months of a child's birth are automatically enrolled in a high-risk provident fund, matching previous siblings' plans where applicable.
Accessing Funds and Government Grants
Accumulated funds become accessible starting at age 18 with parental consent, and unconditionally from age 21. Additional state grants of 582 shekels are awarded at key milestones, including an automatic deposit if funds remain untouched until age 21.
