30 Billion Shekels at Risk — What Is Happening with Pension Money
Israel's pension system has come into focus immediately after the publication of data on high returns on savings and reports of potential risks to the stock market. The main question is what will happen to…
Assessment
A mandatory transfer of 30 billion shekels from pension funds into a special fund is raising questions about its impact on the Tel Aviv Stock Exchange. The timing is notable because the OECD just ranked Israeli pension savings second globally for real returns over the past decade. The risk is that a large forced sale of assets could depress markets, potentially eating into those very returns. Watch for how the government structures the transfer and whether it phases the move to avoid a shock.