Newborns in Fiji can now join the Fiji National Provident Fund (FNPF) following a recent amendment to the FNPF Act of 2011. Effective this month, the change eliminates the previous minimum age limit of six years, allowing parents to register their children as minor voluntary members right from birth. FNPF’s CEO, Viliame Vodonaivalu, highlighted that this initiative aims to foster a savings culture among children.
Vodonaivalu emphasized the importance of retirement savings for many members, stating that it often serves as their primary source of savings. The previous minor voluntary membership scheme was only available to children aged six and older, but this new change allows parents to initiate saving plans for their children from infancy.
This initiative offers parents a way to secure their children’s future, with funds in minor voluntary accounts being accessible for expenses such as tertiary education and medical treatments. Savings in the FNPF benefit from compound interest and investment returns, which means that even small, regular contributions can grow significantly over time.
The minor voluntary membership scheme presents several advantages, including the cultivation of strong financial habits for both children and their parents or guardians, support in achieving financial goals like a first home deposit, and a financial safety net against unforeseen circumstances.
To register a minor voluntary member, a parent or guardian must do so, with a minimum opening deposit of $10 and a minimum monthly contribution of $10 required.