Upon reaching the age of retirement, every Israeli citizen is entitled to significant tax exemptions and benefits in the framework of an application for kibua zechuyot (determination of rights) according to Tikun 190 (amendment 190 of the Income Tax Ordinance).

Kibua zechuyot involves an official application to the Tax Authority stating how the applicant wishes to receive tax benefits. The application is made only once, without the possibility of changing it.

Many retirees are not aware of these tax benefits, do not submit the application, and therefore pay unnecessary taxes.

We specialize in advising you on all aspects of retirement – objective pension advice alongside tax advice – including preliminary planning, representation, and continuous consultations in order to exhaust your rights vis-à-vis the Tax Authority and insurance companies/pension funds.

The advice is given by two professionals, an accountant and an objective pension advisor, aiming to ensure a holistic view and comprehensive planning that takes into account the entire range of relevant factors.

In the past three years, our team has provided these services to more than 200 clients, covering all aspects of taxation, among them:

Kibua zechuyot, tax exemption on compensation payments, capitalizing on annuities, tax returns, disbursement of pitzuyim (compensation, grants to retirees from the security services, foreign pensions, and more.

If you are approaching retirement age or if have passed retirement age but have yet to receive comprehensive advice or to carry out kibua zechuyot – contact us to arrange a meeting and we will be happy to help.

Issues Handled in Retirement Consultations

In a consultation regarding retirement we deal with the following:

1. Analyzing the Pension Funds and Provident Funds Database – we familiarize ourselves with the client’s existing savings and understand the nature of the investments, what is exempt from taxes and what is taxable, what can be left as an inheritance, as well as the monthly/yearly pension allowance, etc. We examine whether the investment portfolio is best suited to the retiree, whether it is possible to reduce service charges and or improve savings products.
2. Explaining the tax implications of retirement – we calculate the client’s eligibility for tax exemption on compensation payments, eligibility for exemption on the monthly allowance in the framework of determining rights, the possibility of withdrawing savings with tax exemption (capitalization), eligibility for exemption as a result of disability (the client or a relative), examining whether it is worthwhile to continue working after retirement, National Insurance issues, the disbursement of pitzuyim (compensation), etc.
3. Investment advice for retirees – upon reaching the age of retirement, you are entitled to various tax exemptions on investments. We examine the client’s investment portfolio to determine whether various investments are worthwhile in light of the unique tax benefits granted to retirees, such as: savings according to Tikun 190; savings policies; investment portfolios suited to retirement; investments suited to US citizens; and more.

Following the consultation, we offer to implement all the recommendations – in terms of pensions, investments, and taxes. This is done by establishing representation and pensionary power of attorney vis-à-vis the Tax Authority.