By Martha Louis – EMTVNews, Port Moresby
Nasfund CEO, Ian Tarutia, has issued a word of caution for members of the fund who are using their savings as a short-term cash facility.
Tarutia says that over the past three years Nasfund has experienced an increase in the number of withdrawals from its members, and that funds are ideally not to be used for short-term purposes.
Superannuation’s primary role is to assist its members in saving their money during their active years of employment, for the purpose of using these funds during retirement.
Currently, there are a growing number of withdrawal applications being processed. The current economic environment is partly responsible for the increase in the number of withdrawal applications.
Many businesses are cutting down on costs, and as a result it is affecting many within the workforce. Members are withdrawing their superannuation funds early as they use up their other means of savings.
This is one of the things Nasfund is now monitoring, as it also poses a challenge to its long-term strategy. The organisation is also pushing the message of long-term savings to assist members understand the importance of saving for life after retirement.
To address the problem Nasfund has created a Kids Savings Accounts. This is in alignment with their savings culture. The purpose of the account is to encourage parents to start saving money for their children at an early age.
It also helps discipline children to have the culture of saving within their own mindset.