כותרת
המרכז לפנסיה, ביטוח ואוריינות פיננסית
The Pensions, Insurance and Financial Literacy Research Center (P.I.F)

Research and Projects


 

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The National Insurance Evaluations of the New Pension Market

The pension market has been experiencing many changes in recent years, existing in a changing reality and in an environment of uncertainty. This study was conducted in collaboration with the National Insurance Institute to provide an overall perspective of the social security system and employment pension – first level and second level – to enable making the adjustments required due to the changes that have occurred and those expected in the future.


 

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Examining the Contribution and Effectiveness of Pension Savings Incentives

In the world of pensions there has been promotion of incentives and tax benefits to encourage people to save for the long term. The current study looks at the effectiveness of this tool from several aspects:

a. Multigenerational observation of pension funding, including designated bonds and tax benefits. b. Examining financial incentives as opposed to behavioral incentives. c. Efficient and correct distribution of designated bonds. d. International comparison of pension funding tools.


 

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A Decade for the Bachar Committee – Capital Market Efficiency in Credit Allocation

Ten years after the approval of the Bachar Committee’s conclusions, this study is meant to examine the capital market in credit allocation. The study has several goals:

a. Mapping the function of pension funds and social security in regard to the national savings and national investment, including the function and effectiveness of financial intermediaries. b. Examining credit contribution to fertility – identifying challenges in raising capital to workers and the production of policy recommendations in the area of expanding investment channels to institutional entities, which will lead to increasing financial capital to workers and increasing fertility.


 

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The Influence of Death and Retirement Anxiety on Pensionary Decisions

Various theoretical models in the field of economic and social psychology attempt to explain the cognitive and behavioral processes that occur in dealing with future retirement. This study examines whether thoughts about the end of life constitute a potent factor for future financial planning. By arousal of death anxiety and retirement anxiety we are trying to assess whether and how these psychological variables affect the preparations for getting organized for pension and retirement. In addition, we are examining whether there is a difference between preparing for pension planning among those who experience death anxiety to those who experience retirement anxiety.


 

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Laymen’s Understanding of the Pension System in Israel

Several studies indicate that the public finds it difficult to understand the pension method used in Israel. Many recipients mix various pension methods and hold the opinion that the pension plan is funded by the State depending on seniority in the job market. This lack of understanding by the public is preventing serious communication with financial institutions and pressing the public to conduct financial matters in an insensible manner. The current study examines the public’s standard concepts about pensions and how the system perceives saving towards the age of retirement.


 

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Capability and Financial Literacy

In recent years the trend of evaluating the daily economic patterns of individuals’ financial prowess is increasing; this provides valuable information regarding the ability of people to make economic decisions and how these decisions are made. This field is known as Financial Capability and it encompasses many variables, both external and internal.

In a study that aims to identify the factors associated with developing financial efficacy and to identify differences in norms and behavioral patterns among population groups and different personal traits, the financial capability level is being measured by four distinct dimensions: money management, planning ahead, selecting financial products, and current information.


 

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How Do You Choose a Privident Fund?

The capital market is one of the major economic obstacles for individuals. On one hand, financial savings are the greatest decision in most households; on the other hand, individuals don’t have the free time and capabilities to analyze the financial alternatives available to them. The main research hypothesis is that in order to deal with the “extensive searches”, potential consumers rely on intermediaries that seem objective to them. In the case of financial consumption – print media.

In this study we will try to assess the impact of the press on the scope of recruitment via saving tools. For example, would positive titles about certain provident funds in a certain month be translated into greater recruitments in the following month? The study realizes consumer

behavior via empirical data on recruitments and redemptions and other characteristics of provident funds.


 

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The Influence of Financial Training in the Short- and Long-Run

The aim of the current study is to identify the impact of the intervention process including long-term financial training and mentoring, and to identify the impact of various factors on the long-term effects of the process. The study was conducted in collaboration with Paamonim, providing financial consultancy and support for families. – לא התקבל תרגום

The study examined the costs and revenues of the families participating in the program at the beginning and at the end of the process, as well as their status several years after the end of the process.

Apart from assessing the financial situation, the study examines demographic and psychological variables connected to financial management, which may influence the success of the program, in order to locate factors that help long-term behavioral change.


 

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The Influence of Psychological Factors on Purchasing an Apartment

The increase in real estate prices sparked a public debate about the ability to purchase an apartment. However, the demand for housing is composed of the elements that cannot be defined as merely financial, being characterized by a lack of understanding or an irrational financial management. In this study, we examine the influence of these aspects on the decision to purchase and live in privately-owned real estate: Limited understanding of alternative cost in the choice to live in the acquired property; irrational expectations of real estate prices; over-evaluation of the feasibility of investing in real estate as a result of the different framing of the yield; – לא התקבל תרגום -preference of investment in physical assets rather than properties ‘on paper’; preference of real estate as a commitment device by its low fluidity. This study will examine the relationship between the degree of liquidity of the assets and privately-owned real estate.


 

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Severance Pay as Part of Pensionary Savings

According to the legislature, severance pay was meant to be a part of the pensionary savings, which could be withdrawn early within given termination conditions. In effect, early withdrawal is a wide-open topic. The purpose of this study is to examine how the public perceives the severance pay money: Is it seen as part of the pension savings? How was this perception created? What are the financial implications of the early withdrawal? Also if and how it can be affected.


 

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Mandatory Pension and Inequality in Israel

The study examines the impact of the mandatory pension, which was applied to the economy in 2008, the rate of inequality among retirees in Israel, one of the highest in the West, just before the reform. In order to analyze the distribution of revenues from pension funds, the researchers used both a unique database, which was donated by a large pension fund, and an advanced pension simulator developed for this study. With the help of the simulator, this study for the first time evaluates the impact of part-time work on the expected pension allowance.

 

The researchers find that expanding insurance coverage is expected to reduce the inequality index among the retirees in Israel, by assuming that the pension funds accumulated in the Fund are not withdrawn before retiring. With the violation of this assumption, the researchers discover that early withdrawal of money places the allowance amount at risk and could undermine the success of the reform.

In the world of pensions there has been promotion of incentives and tax benefits to encourage people to save for the long term. The current study looks at the effectiveness of this tool from several aspects:

a. Multigenerational observation of pension funding, including designated bonds and tax benefits. b. Examining financial incentives as opposed to behavioral incentives. c. Efficient and correct distribution of designated bonds. d. International comparison of pension funding tools.