Free tool
Pension calculator: estimated monthly pension and the cost of fees
What this tool tells you
This tool estimates a monthly pension from the balance you have today, your monthly deposit, the years left to retirement, an assumed return and management fees. It runs the same plan once with the fees and once without, and the difference is what fees take from the balance and from the pension.
Last updated:
The calculation runs in your browser, and the numbers you enter are not sent anywhere.
How it is calculated
The balance is calculated month by month. Today's balance grows at the net return, which is the assumed annual return minus the fee on the balance, and each monthly deposit lands at the end of the month after the fee on deposits has been taken out of it. The estimated pension is the balance at retirement divided by the conversion factor you choose. The calculation runs once with your fees and once with zero fees, and the cost is the difference.
r = (1 + (return − fee) / 100)^(1/12) − 1
balance = start × (1 + r)^n + deposit × (1 − depositFee / 100) × ((1 + r)^n − 1) / r
pension = balance / factor
fee cost = pension(no fees) − pension(with fees)
n is the number of months (years × 12), return is the assumed annual return before fees, fee is the annual fee on the balance in percent, depositFee is the fee on deposits in percent and factor is the annuity conversion factor.
Assumptions
- The monthly deposit is constant, and today's balance is the starting point.
- The return is constant for the whole period and the same in both cases, with fees and without.
- The conversion factor is a number you choose. The value shown at the start is an illustration only; the real factor is in the fund's annual report or from the fund.
- The calculation includes no tax, inflation, insurance cost (disability and survivors), indexation, life expectancy or differences between tracks.
- Ranges in the tool: a balance of 0 to 2,000,000 shekels, a deposit of 0 to 15,000 shekels, 1 to 45 years, a return of 1% to 9%, a fee on the balance of 0% to 2.5%, a fee on deposits of 0% to 6% and a conversion factor of 120 to 260.
How to read the result
- Start with the large card: the estimated monthly pension with the fees you entered.
- The red cards show how much fees take from the balance and from the pension, compared with the same plan without fees.
- Lower the fee with the slider and watch the pension grow. The more years to retirement, the bigger the difference.
- Do not treat the pension as a promise. Change the return and the factor and see how sensitive the result is to the assumptions.
Limits of this tool
The tool does not know your actual balance or expected pension, and it does not replace the fund's annual report, the projection in that report or pension advice. The real pension depends on the conversion factor, the retirement age, the track and actual returns.
This is an illustration based on the numbers you entered, not personal advice or a recommendation. Check current rules and amounts at gov.il or on the Capital Market, Insurance and Savings Authority website.
Frequently asked questions
How do I calculate how much monthly pension I will get?
Estimate the balance at retirement from today's balance, the deposits, the return and the fees, then divide it by the annuity conversion factor. The tool does this and shows the formula, but the result is an estimate only.
What is the annuity conversion factor and where do I find it?
It is the number you divide the balance by to get a monthly pension. It depends on the fund and its terms, and the value that applies to you is in the fund's annual report or from the fund. The value in the tool is an illustration only.
How much do management fees take from a pension?
It depends on the rate, the deposits and the years. The tool calculates the same plan with and without fees, and the difference between the two results is the cost. Your actual fees are in the fund's report.
What return should I enter?
No one can know a return in advance, and the tool does not recommend a rate. Try several values within the allowed range and watch how the result changes.
Is the result a forecast or advice?
No. It is an illustration based on the numbers and assumptions you enter. The official projection for retirement is in the fund's annual report, and for decisions it is worth using a licensed professional.
Where can I see my balance and my fees?
In the fund's reports, or in Har HaBituach and the pension clearing house. The Shavve app shows them together for every product you connect.
Read more in the guides
Guides
What is a Pension Fund?
A comprehensive guide to pension funds – how they work, why they matter, and how to choose a track and compare fees.
Guides
Management Fees: How a Small Percentage Eats a Big Part of Your Savings
Why a one-point fee gap turns into years of savings, where fees hide in pension and study funds, and which questions to ask your fund manager.
Guides
How to Lower Management Fees on Pension, Study and Provident Funds
The legal ceilings on management fees in a pension fund and an investment provident fund, how to check what you pay, how to negotiate and when to move, step by step.
Guides
How to Read a Pension Statement, Field by Field
A guide to your pension fund's quarterly and annual statement: deposits, fees on deposits and on balance, insurance cover, investment track and beneficiaries, and what to check in each.
Guides
How to Check How Much Pension You Have (and Where It Is)
How to find all your pension and provident funds and check balance, deposits and fees: the pension clearing house, Har HaKesef and Har HaBituach.
Terms worth knowing
Management fees are what the managing provider charges to run your savings. They come out of your money quietly and never arrive as an invoice.
Fees on deposits are a percentage charged on every new deposit that enters the savings.
Fees on balance are an annual percentage of the amount already accumulated in the savings.
The accumulated balance is the amount built up in a fund to date, usually split into components: employee contributions, employer contributions and severance.
Related tools
Management fee calculator for pension and savings funds
Compares two management fee rates and shows how much is left in the fund at the end.
Shows what a starting amount and monthly deposits grow to, and how much of it is growth.
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