Newborns in Fiji can now join the Fiji National Provident Fund (FNPF) thanks to an amendment to the FNPF Act of 2011. This change, effective from this month, eliminates the previous age requirement of six years, allowing parents to register their children as minor voluntary members from birth. FNPF’s Chief Executive Officer, Viliame Vodonaivalu, highlighted that this initiative aims to promote a culture of savings, particularly for children.
Vodonaivalu emphasized the importance of retirement savings for many members, which often serve as their primary source of financial support. The previous minor voluntary membership was available for children six years and older, but now parents can initiate savings plans for their children right from infancy.
He explained that this initiative presents parents with a valuable opportunity to secure their children’s future, particularly as the savings can be utilized for higher education and medical expenses. Funds in the FNPF accounts will also benefit from compound interest and investment returns, resulting in steady growth even from small, regular contributions.
The minor voluntary membership scheme offers various advantages, including the development of strong financial habits, empowerment for long-term goals like home deposits, the benefit of savings growth through compound interest, and financial security against unexpected events.
To establish a minor voluntary account, a parent or guardian must register the child. The minimum amount needed to open an account is $10, with the same minimum amount required for monthly contributions.