Low FNPF balances due to four main reasons: CEO
March 19, 2019 4:47 pm
FNPF Chief Executive Jaoji Koroi
The Fiji National Provident Fund has revealed that low wages are one reason for low member account balances.
The superannuation fund has almost 430,000 registered members, out of which about 57,000 are over 50-years-old and have balances below $10, 000.
About 64,000 members have zero balances.
FNPF Chief Executive Jaoji Koroi reveals that 90% of their members earn below $30,000.
“I think based on the average contribution that’s around $16,000 a year. So we are working with the majority of our members have low wages. The second one is irregular employment, members sometimes break their employment so that’s a contributing factor. The third one is heavy withdrawals over the years, even the grounds that were allowed before as you know we have now cut down to the five core ones.”
The FNPF has 236, 058 members who actively contribute throughout the year while over 4, 000 are voluntary members.