Newborns in Fiji can now join the Fiji National Provident Fund (FNPF) following an amendment to the FNPF Act of 2011. The FNPF announced this change, effective this month, which eliminates the previous minimum age requirement of six years. Newborns can now be registered as minor voluntary members. FNPF CEO Viliame Vodonaivalu explained that this initiative aims to foster a savings culture among children.
Vodonaivalu noted, “For many of our members, their retirement savings is their only source of savings.” He highlighted that while the voluntary membership scheme was previously restricted to children aged six and above, the new policy allows parents to initiate savings for their children right from birth. This change provides parents with another avenue to prepare for their children’s future, particularly for expenses related to higher education and medical care.
The FNPF’s savings accounts benefit from compound interest and investment returns, meaning that even small, regular contributions can accumulate significantly over time. The minor voluntary membership scheme includes several advantages, such as helping develop strong financial habits for both children and their parents or guardians, empowering families to achieve savings goals like a first home deposit, allowing funds to grow through compound interest, and providing a financial safety net against unexpected events.
To enroll a minor, a parent or guardian must register them, with an initial deposit requirement of $10 and a minimum monthly deposit also set at $10.