Quick Navigation
The Pension Crisis: Why Traditional Retirement Is Failing
The Numbers Do Not Lie
of retirees report pension insufficient for living expenses
average monthly pension in Israel
minimum needed for comfortable retirement
The gap between pension income and actual living costs is widening every year. Factors include:
Rising Cost of Living
Inflation erodes purchasing power while pension adjustments lag behind.
Demographic Shift
Fewer workers supporting more retirees strains the entire system.
Longer Lifespans
Your retirement might last 30+ years - can your pension keep up?
Low Interest Rates
Pension fund returns have declined as interest rates stayed low.
The Real Estate Solution: Building Your Own Pension
Why Real Estate Beats Traditional Pensions
Monthly Cash Flow
Rental income arrives every month, just like a salary - but you control it.
Inflation Protection
Property values and rents typically rise with inflation, maintaining your purchasing power.
Tangible Asset
Unlike pension fund shares, real estate is physical - it cannot disappear or be mismanaged.
Generational Wealth
Pass income-generating properties to your children - a pension cannot be inherited.
Control
You decide when to sell, refinance, or pass on - no actuarial tables deciding your fate.
The Fortress Strategy: Building Retirement Security
The Three Pillars
Pillar 1: Israeli Property
Your home base. Use equity from existing property to fund international investments. Primary residence provides stability and tax benefits.
Pillar 2: International Income Properties
Georgia and Budapest offer high yields (7-12%), favorable tax treatment, and lower entry costs. Geographic diversification reduces risk.
Pillar 3: Institutional Pension (Safety Net)
Keep your institutional pension as backup. Real estate supplements, not replaces, traditional retirement savings.
Best Investment Locations for Retirement Income
🇬🇪 Georgia (Batumi)
- • Entry: $50,000-$80,000
- • Rental yield: 8-12%
- • Rental tax: 5%
- • Capital gains after 2 years: 0%
- • Property tax: 0% (most investors)
🇭🇺 Hungary (Budapest)
- • Entry: $100,000-$150,000
- • Rental yield: 5-8%
- • Price appreciation: 19% (2024)
- • Capital gains after 5 years: 0%
- • EU property rights
For Israeli Residents
Israeli tax residents must report worldwide income and assets. Tax treaties with Georgia and Hungary prevent double taxation. We work with Israeli CPAs who specialize in international real estate to ensure proper compliance.
Share this article
Legal Disclaimer
The data and returns presented are for illustrative purposes only and are based on past performance or market estimates. This information should not be considered as a guarantee of returns, investment advice, or a substitute for individual tax advice. Real estate investment involves risks, including regulatory changes, currency fluctuations, changes in property condition, and local market conditions. RealFix does not guarantee the displayed returns and is not responsible for losses resulting from investment. It is recommended to consult with a Certified Public Accountant and tax consultant before making investment decisions. E&OE.
