FNPF Partners With Reserve Bank And Financial Institutions for Retirement Expo
More than 20,000 people over 55 years of age have no money saved in their Fiji National Provident Fund (FNPF) accounts, statistics show. Some 300,000 people – around 73 per cent have balances below $10,000. Low wages and frequent withdrawals have been blamed for the numbers.
As the fund prepares for the launch of its Retirement Expo next week, the statistics reveal the scale of task facing newly-appointed chief executive officer Jaoji Koroi.
With less than five per cent having balances above $50,000, the message during the expo will be clear: It’s not too late.
“The reality of the situation on the ground is sad,” said Mr Koroi at a press briefing in Suva yesterday. “Majority of our people are retiring with low balances.
“We are taking action to encourage our citizens to rethink their retirement. We want them to first understand that retirement is a certainty in life and whether they have enough saved to live comfortably after retirement.” But it is not all “sad” news.
In the last five years FNPF’s total member balance increased by $1.5 billion, from which $1 billion alone was from total interests credited.
Public Awareness
Low FNPF balances mean less options and insecurity in retirement, Mr Koroi said. Recent policy changes at FNPF have been framed on fewer withdrawals and stringent saving plans.
Public awareness has also been a key feature of this. The fund has increased its presence on Facebook and engages more often with mainstream media.
These strategies allow Mr Koroi and the fund to “effectively engage with the members” and ensure members don’t only come to FNPF when it is time to withdraw.” “We believe awareness can empower our members,” said FNPF general manager Alipate Waqairawai.
“We want to tell people that the best time for them to prepare for retirement is when they are young.”
The expo begins on Monday at the Downtown Boulevard in Suva.
Fifty-five-year-old Isikeli Taoi, a senior banker with Bank South Pacific, thinks the timing of it is apt. “You have to prioritise your spending so you can secure a future for not only yourself but also for your children,” the senior manager rural in the microfinance department said.
He has six children and said he had already purchased land and divided it amongst them. FNPF is partnering with the Reserve Bank of Fiji, the National Financial Inclusion Taskforce and the United Nations Pacific Financial Inclusion Programme for the expo. Similar expos are planned for the Western and Northern Division in the coming months.
These strategies allow Mr Koroi and the fund to “effectively engage with the members” and ensure they don’t only come to FNPF when it is time to withdraw.”