NATION

Don’t Treat FNPF Savings Account As Bank Account’

Fiji National Provident Fund chief financial officer Pravinesh Singh said retirement savings should be preserved and not treated like a bank account. Mr Singh stressed this point during the members’
14 Nov 2015 10:30
Don’t Treat FNPF Savings Account As Bank Account’
From right: FNPF Assistant General mamanger member services Alipate Waqairawai,Chief financial officer Pravinesh Singh and Chief investment officer Jaoji Koroi yesterday during the consultations at the Tanoa waterfront hotel in Lautoka .Photo: SALOTE QALUBAU

Fiji National Provident Fund chief financial officer Pravinesh Singh said retirement savings should be preserved and not treated like a bank account.

Mr Singh stressed this point during the members’ consultation at the Tanoa Waterfront Hotel in Lautoka yesterday.

He said measures had been implemented by FNPF to ensure retirement savings were sufficient for members.

“Excessive withdrawal could lead to 80 per cent of retirees in the next four years having less than $50,000 saved up,” he said.

“This is why FNPF had devised three solutions which was through a preserved account from November last year where 70 per cent is locked for retirement, reducing withdrawal grounds from 22 to five and giving members the option to increase contributions to 12 per cent to increase retirement savings.”

He said apart from the eight per cent mandatory, employees can also put in 12 per cent, so maximum contribution from an employee can go up to 20 per cent.

“The response is good and we have seen people coming in and giving their additional contributions.

He said the Government has also kept to its word to assist FNPF members.

“When FijiFirst was doing its manifesto they said that when they come into power employer contributions will increase by two percent,” Mr Singh said.

He added that the FijFirst Government have fulfilled their promise effective January 1 this year where employers were required to put in an extra two per cent in addition to the eight per cent which was mandatory from them.

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