The National Insurance Institute’s Administration is going to introduce a plan called ‘Savings for every child’ on January 1 2017. The plan will enable everyone reaching age 18 to begin their adult life with NIS 20,000 in the bank.
“The new trust fund for every child will go a long way to narrow the social gaps in Israel, and promote equal opportunities for middle class and the weaker sectors, as well as raise awareness about saving,” said Finance Minister Moshe Kahlon.
The trust fund plan is based on National Insurance Institute making 50 NiS ($14) monthly deposits in an interest-guaranteed special savings account or provident funds with different risk levels.
On 1 January 2017 each child below 18 years will already have NIS 1,000 in their account as of that date as a result of a retroactive payment that the Ministry of Finance promised to make when the government was formed in the summer of 2015
The budget allotted for the plan is NIS 2.65 billion a year.
More details here
