Newborns in Fiji can now join the Fiji National Provident Fund (FNPF) following a recent amendment to the FNPF Act 2011. This change, announced this week, takes effect this month and eliminates the previous minimum age of six for membership, allowing parents to register their newborns as minor voluntary members. FNPF’s chief executive officer, Viliame Vodonaivalu, stated that this change aims to foster a culture of savings from an early age.
Vodonaivalu emphasized that many members rely on their retirement savings as their primary source of funds. The minor voluntary membership, previously available to children aged six and older, now permits parents to start saving for their children right from birth. This initiative provides another means for parents to plan for their children’s future, as funds in these accounts can be used for tertiary education and medical expenses.
He noted that savings deposited in the FNPF benefit from compound interest and investment returns, allowing even small contributions made consistently to grow significantly over time. The minor voluntary membership scheme offers various advantages, including fostering strong financial habits in children and parents, assisting in achieving financial goals like saving for a first home, providing an opportunity for savings to increase through compound interest, and ensuring financial security against unforeseen events.
To register as a minor voluntary member, a parent or guardian is required, with a minimum deposit of $10 needed to open an account and a minimum monthly deposit of $10 also required.