Newborns in Fiji can now officially become members of the Fiji National Provident Fund (FNPF) due to a recent amendment to the FNPF Act 2011. This change, which takes effect this month, eliminates the previous minimum age limit of six years, allowing parents to register their newborns as minor voluntary members.
FNPF Chief Executive Officer Viliame Vodonaivalu explained that the amendment is part of the organization’s initiative to foster a culture of savings, particularly aimed at children. He noted that many members rely on their retirement savings as their primary financial resource.
Previously, the minor voluntary membership scheme was available only to children aged six and older, but with this new adjustment, parents can now start savings plans for their children from birth. Vodonaivalu emphasized that this initiative provides parents with an opportunity to plan for their children’s future, as savings in these minor voluntary accounts can be utilized for higher education expenses and medical treatment.
He highlighted the advantages of saving with FNPF, which accrues compound interest and investment returns, meaning that even small contributions made regularly can grow significantly over time.
The minor voluntary membership scheme offers several benefits, including:
– Development of strong financial habits for both the child and parents/guardians.
– Empowerment to achieve long-term goals, such as saving for a first home deposit.
– Potential for significant growth of savings through compound interest over time.
– Financial security to lessen the impact of unforeseen circumstances.
To enroll a minor, a parent or guardian must register, and the initial deposit to establish an account is $10, with a minimum monthly contribution of the same amount required.