FNPF targets reforms for retirement fund stability

February 16, 2024 4:38 pm

The Fiji National Provident Fund addressed a critical issue plaguing pensioners whereby they were retiring with sums below $20,000 in their retirement funds.

FNPF attributed this alarming trend to outdated policies that encouraged members to treat their funds as a casual bank resulting in frequent and substantial withdrawals.

FNPF’s General Manager for Member Services Alipate Waqairawai says the previous policy allowing members to withdraw 70 percent was a detrimental factor, defeating the very purpose of establishing retirement funds.

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Waqairawai highlights that prior policies encouraged early withdrawals, prompting the preservation policy shift.

“When we did the reforms that was one thing we were to change the preservation policy. 30% is preserved for your general account which allows for 5 grounds of withdrawals, which was reduced from 23 grounds of withdrawals. Members were treating the fund as if it were their bank. FNPF is not a bank, it’s for your retirement”.

The recent discussions at the FNPF Forum highlights the importance of retirement planning and the challenges faced by members serving as a wake-up call for policymakers and stakeholders to prioritize reforms ensuring the long-term viability of retirement funds.