Your Israeli pension at retirement
A monthly pension from a pension fund or an insurance policy is taxed as income, but much of it can be exempt. Moneta projects your savings to retirement, turns them into a monthly pension and applies the 2026 exemption.
The exemption on a qualifying pension
57.5% of a qualifying pension (kitzba mezaka) up to ₪9,430 a month is exempt from income tax — at most about ₪5,422 a month in 2026. The rest is taxed like salary, and your credit points still apply.
The old-age allowance
Bituach Leumi's old-age allowance comes on top: ₪1,838 a month for a single person in 2026, plus a seniority increment of up to 50% for years of insurance and a supplement from age 80. It is not taxed.
Men are entitled at 67. For women the age is rising from 62 to 65 by year of birth, and is 65 for those born in 1970 or later. Until 70, the allowance can be reduced while you still earn from work.
Fees decide more than they seem to
Management fees — on deposits and on the accumulated balance — compound over decades. Moneta can rerun the same plan with two fee deals side by side and show what each leaves you at retirement.
Frequently asked questions
Is an Israeli pension taxed?
Partly. In 2026, 57.5% of a qualifying pension up to ₪9,430 a month is exempt; the rest is taxed like salary, with your credit points.
Is the old-age allowance taxable?
No. Bituach Leumi's old-age allowance is not subject to income tax.
At what age can I get the old-age allowance?
At 67 for men, and between 62 and 65 for women, depending on the year of birth.