What is retirement planning?

You have worked your whole life and accumulated your savings. Now, as you near retirement, you have to plan your use of these savings efficiently and effectively, to guarantee your financial welfare and allow you to go on accruing profits. Planning your retirement is not an “intuitive” act, but rather requires professionalism, experience and an immense responsibility for your financial future.

Retirement planning is a financial “super-strategy” preparing you for retirement age and allowing you to optimally utilize all your financial assets: pension savings, provident and study funds, various funds, investment money, et cetera.

Retirement planning maps the types of money accrued and requires familiarity with the countless pension plans available on the market and with the taxation changes and fluctuations undergone by every plan. It combines familiarity with financial entities and the laws of taxation to create maximum profit.

Precise, strong and well-reasoned retirement planning provides you with a financial-strategic course of action tailored not just to your financial asset snapshot but also to your personality, requirements, aspirations, desires and dreams for your retirement years.

Why is retirement planning the most important step to take when you retire?

Retirement planning has to achieve an integration between multiple financial and personal processes, optimize the utilization of your financial assets as you retire and prevent the loss of money you’ve worked your whole life to save. How is loss created? For example, when you misunderstand the taxation of retirement money.

Different pension savings plans have different taxation rules and you have to be familiar with the subject down to its minutest details in order to maximize the finance and tax potential. Some savings are better redeemed as a lump sum, some are better paid out as a monthly pension, and naturally you have to be familiar with the tax benefits granted under each of the options.

Retirement planning requires an understanding of the “butterfly effect” caused by every decision made. It requires an in-depth understanding of thorny, interdependent taxation methods, of the proper way to utilize tax benefits and of smart cash flow management.

Retirement planning is the strategy allowing you to uncompromisingly meet the new expectations and needs resulting from your retirement and combines financial creativity arising from deep knowledge with close and personalized tracking of your finances.

Why plan your retirement at Kali?

Experience, proficiency and knowledge accumulated for over 50 years

Kali Group has operated for over 50 years now. We handle clients with a scope of assets amounting to NIS 27 billion. We have dozens of private clients, hundreds of organizations and companies, with the numbers growing every year.

Our experts are experienced and proficient in managing complex challenges in finance and pension and have a deep understanding of the history, present and future of the financial and pension market in Israel and worldwide.

We are leaders in our field, working professionally and with uncompromising reliability, and retirement planning is our bread and butter. We will provide you with personal, responsible and dedicated service.

100% objectivity – we are not financially dependent on any other entity

Kali is a privately-owned group, not dependent on any other financial entity and having no conflicts of interest. What does this mean? It means we have no exclusivity agreements and no binding financial relationship with any investment house, insurance company or other pension entity. Our relationship is with everyone and is entirely oriented at attaining our clients’ interests.

This fact allows us to achieve 100% objectivity toward your own financial interests only. We work with all major entities in Israel and abroad and accordingly can create a retirement plan comprised of the mixture most appropriate for you personally, rather than one in service of a certain entity’s financial interest.

We will accompany you through all the bureaucratic procedures and paperwork

Our experts will make the bureaucracy work for you. We are familiar with every law and every new regulation, down to their minutest details. We use that knowledge to provide our clients with as many advantages and opportunities as possible.

We will give you peace of mind on everything related to the paperwork and accompany you vis-à-vis all entities involved. We will provide you with close bureaucratic accompaniment which, as you retire, becomes critical. We will save you time and money and spare you the need to be bogged down by the complex processes involved in retiring.

This is how we hold a retirement planning meeting

Understanding the bigger picture

First, we’ll help you understand two important things before we construct your retirement plan.

The first is the personal aspect: Who are you? What level of risk most suits your personality? What variables affect you? Family, time, health, major plans you already have, et cetera.

The second is the financial aspect: We’ll gain an understanding of the big picture of all your financial assets, how much money you have in all your savings and where it is. We will also gain an understanding of your expenses and income snapshot.

How will we know the monthly income amount recommended for you personally after you retire? Here too there are two key stages.

The first is to understand the amount of your current actual monthly expenses. Now is the time to take out a pen and paper, sit down and review your monthly current account and consider your regular expenses: food, housing, leisure, treats for your grandchildren, et cetera.

To this list we’ll add another column – that of foreseeable future expenses: financial support of your children, a one-year trip around the world, purchasing an investment property, renovating your home like you’ve always dreamed, et cetera.

Now we’ll write down all your income. If you have other sources of income not included in your retirement money such as annuities, current or expected inheritances, rent, et cetera, they will naturally be included in the retirement plan.

Let’s also consider your health

You can’t help growing old, and growing hold sometimes affects your health. Health has an immense impact on your expected expenses and life expectancy, which are important parameters for achieving a strong and well-reasoned retirement plan.

Together, we’ll gain an understanding of the parameter of your heath, an in-depth understanding of its financial impacts and will create a retirement plan prioritizing your own health and that of your spouse and family.

A significant part of retirement planning is knowing when to retire

The timing of your retirement is also an important decision! If, for example, you have selected the monthly pension track, you have to decide the best exact time to start receiving the pension. On the one hand, postponing the receipt of the pension could cause the monthly pension to increase, while on the other it could lead to a loss of the pension paid as from today – a loss which could sometimes be higher than the increment obtained by postponing the pension.

There are also a lot of important decisions that need to be made: Out of which plans will the monthly pension be paid so that the money does the most for you? What amounts should you receive as lump sums? Should certain amounts be redeemed now? Should the money be kept in the current plan or perhaps moved to another? Kali’s experts will sit down with you to answer all these questions.

According to this list, we will estimate the cash flow required per month and will construct a strong and well-reasoned retirement plan reactive to your reality, taking your dreams into account and guaranteeing you profit and welfare.

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