Check: Profit gaps of tens of thousands of shekels in the 'Savings for Every Child' program

A simulation by PWC for the Association of Investment Houses reveals that profits from the 'Savings for Every Child' program in provident funds may be about 50,000 shekels higher than those in bank deposits. The examination shows dramatic gaps between the tracks and notes that families from low socioeconomic status tend to choose bank deposits, thus cementing a loss of tens of thousands of shekels.

A new simulation conducted by the financial services firm PWC for the Association of Investment Houses reveals that the profit from the 'Savings for Every Child' program in provident funds may be about 50,000 shekels higher than what would be achieved in bank deposits. The data illustrate the magnitude of the mistake made by the Ministry of Finance when it allowed banks to take part in the program, and that the decision of where to manage the savings may dictate dramatic gaps in the starting point of young Israelis for adult life. The examination was divided into two parts: first, it examined actual performance since the program's launch until March 2026. While the savings deposited so far stand at about 11,500 shekels, a child whose funds were managed in a provident fund in a high-risk track accumulated a profit of about 8,800 shekels. The most profitable bank track generated a profit of only about 2,000 shekels. In the second stage, a simulation was conducted assuming that returns would continue at the same rate. According to the simulation, the child in the high-risk provident fund is expected to reach age 18 with a projected profit of nearly 56,000 shekels. In contrast, a child in a bank deposit is expected to have a profit ranging from about 3,800 shekels to about 10,100 shekels. Families from low socioeconomic status are more likely to choose bank deposits, thus cementing a loss of tens of thousands of shekels. However, the future simulation numbers should be viewed with great caution, as there is no certainty that the high return will be maintained, and there is risk in the capital market.