Newborns in Fiji are now eligible to join the Fiji National Provident Fund (FNPF) following an amendment to the FNPF Act of 2011. This change, which takes effect this month, removes the previous minimum age requirement of six years, allowing parents to register their infants as minor voluntary members. FNPF CEO Viliame Vodonaivalu explained that this initiative aims to foster a savings culture for children.
Vodonaivalu emphasized the importance of retirement savings as a primary financial resource for many members. He noted that the updated minor voluntary membership scheme encourages parents to initiate savings for their children right from birth.
“This presents another option for parents to plan for their children’s future, particularly since the savings accumulated in minor voluntary accounts can be used for tertiary education and medical expenses,” he stated.
Saving with FNPF is advantageous due to compound interest and investment returns, ensuring that even small contributions can grow significantly over time.
The minor voluntary membership scheme offers numerous benefits, including fostering robust financial habits among children and their guardians, aiding in long-term goals such as home deposits, allowing for growth through compound interest, and providing a financial safety net in unexpected situations.
To register a minor voluntary member, a parent or guardian must complete the process. The minimum deposit needed to open an account is $10, with a requirement of at least $10 for monthly contributions.