Newborns in Fiji can now become members of the Fiji National Provident Fund (FNPF) after an amendment to the FNPF Act 2011. The change, which takes effect this month, eliminates the previous minimum age limit of six years and allows parents to register their infants as minor voluntary members. FNPF chief executive officer Viliame Vodonaivalu highlighted that this initiative aims to foster a culture of savings among children.
Vodonaivalu noted, “For many of our members, their retirement savings are their main source of savings. The modifications mean that parents can begin saving for their children from birth.” He explained that the minor voluntary membership scheme serves as an effective way for parents to invest in their children’s futures, particularly for education and medical expenses.
FNPF savings benefit from compound interest alongside investment returns, allowing funds in any member’s account to grow, even with small regular contributions. Vodonaivalu outlined several advantages of the minor voluntary membership scheme, including:
– The development of strong financial habits for both children and their parents or guardians
– Empowerment towards achieving financial goals, such as a down payment on a home
– The opportunity for savings to grow over time through compound interest
– Financial security to help manage the impact of unexpected events.
To enroll as minor voluntary members, children must be registered by a parent or guardian. The minimum initial deposit to open an account is $10, and the minimum monthly deposit is also $10.