The Olam
Financial Instrument / Savings

Kupot Gemel

Israeli long-horizon tax-advantaged provident funds. Two subcategories: retirement-purpose and investment-purpose. The principal medium-and-long-horizon savings vehicle beyond compulsory pension contributions.

Kupot Gemel (Hebrew: קופות גמל — "provident funds") are Israeli long-horizon tax-advantaged savings vehicles. Two principal subcategories: kupot gemel le-tagmulim (retirement purpose) and kupot gemel le-hashka'a (investment purpose). Managed by the integrated insurance groups or by specialist provident-fund managers — the principal medium-and-long-horizon tax-advantaged savings vehicle for Israeli households beyond mandatory pension contributions.

Kupot gemel sit inside Israeli institutional investor assets that exceeded ₪2.75 trillion by end-2024. Three specialist managers — Altshuler Shaham, Meitav, More Provident Funds — operate alongside the five large insurance groups (Migdal, Phoenix, Harel, Clal, Menora Mivtachim) in the kupot gemel category. A typical household selecting an Altshuler Shaham kupat gemel le-hashka'a chooses among multiple investment tracks (general, equity-heavy, fixed income-heavy) within a single fund, switching between tracks without tax consequence.

Together with kranot hishtalmut (study funds), kupot gemel form the principal medium-and-long-duration Israeli household savings stack outside the compulsory pension system itself.

Read Next in The Olam

  • Kranot Hishtalmut — The shorter-duration tax-advantaged counterpart
  • Institutional Capital — The aggregate institutional capital base
  • Migdal Insurance · Phoenix Holdings · Harel Insurance · Clal Insurance · Menora Mivtachim · Psagot — The administering groups
  • Pension Reform (2008) — The statute defining the compulsory pension layer
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