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A Fiji academic says member contributions to the country’s only superannuation; the Fiji National Provident Fund (FNPF) peaked in 2006 but then started reducing from there on.
Dr Rohit Kishore, a senior lecturer at the University of the South Pacific’s School of Accounting and Finance, speaking at the Fiji Economy Update 2010 said this is mainly due to mass migration.
“The other major issue is people are taking out their benefits more than contributions being made which will finally have an impact on our social security,” he stressed.
He highlighted the withdrawal in 2009 was $75.43 million compared to $57.9 in 2008.
Kishore attributed most of the withdrawals to migration, partial withdrawals and people taking money out upon retirement.
“People should be mindful that these money is o provide cushion when people get old and if they keep taking little money out for small difficulties, then they will find it more difficult in the future.”
He acknowledged FNPF tightening the withdrawal policy which will automatically deter people from withdrawing from this superannuation fund.
Kishore is hopeful future investments by the FNPF will be based on careful decision and the end result will see members receiving maximum interest from FNPF.
By Rachna Lal
