Papua New Guinea’s Prime Minister James Marape has unveiled essential reforms designed to enhance the financial security of retirees in the nation. During the launch of the NASFUND FM100 Talkback Show, he stressed the significance of saving for the future and the need for citizens to have financial stability post-employment.
Prime Minister Marape pointed out the unfortunate reality that many elderly citizens face financial hardships despite having made substantial contributions to society during their working years. The government’s initiative aims to shift this narrative by promoting long-term savings and examining potential mechanisms to match voluntary contributions for retirement funds.
The proposed policy framework includes:
– Encouraging all individuals, especially those in the informal sector, to contribute to NASFUND.
– Exploring methods for the government to match contributions, providing incentives for long-term saving strategies.
– Establishing a structured approach to retirement planning, ensuring that superannuation funds serve as a sustainable financial resource instead of a short-term solution for urgent withdrawals.
He emphasized that superannuation should be viewed as a resource for lifelong financial security rather than a tool for immediate withdrawals. Businesses of all sizes are also being urged to facilitate superannuation contributions for their employees, so that workers can secure their financial futures beyond their working years. This policy will extend to small and medium enterprises (SMEs) and market vendors, encouraging their participation in savings programs.
This reform is part of a larger economic strategy involving:
– Strengthening the role of superannuation funds in driving national economic growth.
– Fostering partnerships between the government, financial institutions, and super funds.
– Promoting fiscal policies that deepen financial independence for all citizens.
The Prime Minister called on the citizens of Papua New Guinea to develop a culture of saving and to actively participate in superannuation initiatives. He reiterated the government’s commitment to ensuring that every citizen has the opportunity for a financially secure retirement, with more details regarding the new contributions matching program and its implementation expected to be announced in the upcoming months.
This initiative stands as a hopeful endeavor, reflecting a commitment to the welfare of retirees and the overall enhancement of financial literacy and security across generations in Papua New Guinea. By fostering a culture of savings and collaboration between the government and citizens, the country can work towards a more stable financial future for its elderly population.
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