Early retirement (FIRE) in Israel
FIRE (financial independence, retire early) means a portfolio big enough to live off. Moneta's FIRE calculator takes your net worth, monthly savings and target spending and shows how many years you are from that line.
The FIRE number: 25× your spending
The 4% rule says a portfolio can pay out 4% of its starting value a year, raised with inflation, and very likely last 30 years. So you need 25 times your annual spending: ₪20,000 a month, ₪240,000 a year, means a FIRE number of ₪6,000,000.
The rule comes from US market history. For a retirement that may last 40 years or more, many people plan on 3–3.5% instead, which means 29 to 33 times spending.
How long it takes
| Monthly savings | Real return | Years to ₪6,000,000 |
|---|---|---|
| ₪5,000 | 5% | 29.4 |
| ₪10,000 | 5% | 21.6 |
| ₪15,000 | 5% | 17.3 |
| ₪10,000 | 7% | 18.3 |
Starting from ₪500,000. Saving ₪5,000 more a month (21.6 → 17.3 years) does more than two extra points of return (21.6 → 18.3). Your savings rate drives the timeline.
What is different in Israel
- Tax on what you sell: 25% of the real gain, so the spending target has to cover the tax as well.
- Pension and provident-fund savings generally cannot be drawn before 60. The years until then are funded from money you can reach: a brokerage account, an investment provident fund, or a study fund older than six years.
- A resident who stops working still pays a minimum National Insurance and health contribution every month.
- The old-age allowance, ₪1,838 a month for a single person in 2026, starts at 67 for men and between 62 and 65 for women, and lowers what the portfolio has to cover from then on.
Frequently asked questions
How much money do I need to retire early in Israel?
25 times your annual spending under the 4% rule: ₪6,000,000 for ₪20,000 a month. Plan on more if retirement may last longer than 30 years.
What is the 4% rule?
Withdrawing 4% of the portfolio in the first year and raising it with inflation afterwards, which historically lasted at least 30 years in almost every period.
Can I use my pension money to retire early?
Generally not before 60. Until then you live off savings you can reach, such as a brokerage account, an investment provident fund or a study fund older than six years.