Fiji’s Pension Fund has introduced a new membership scheme, allowing parents to enroll newborns as minor voluntary members.
The amendment, effective this month, removes the previous minimum age limit of six years, enabling parents to register children from birth.
Fiji National Provident Fund(FNPF) Chief Executive Officer Viliame Vodonaivalu stated, “This change is part of the Fund’s plans to encourage a culture of savings, particularly for children.”
He highlighted the importance of retirement savings for many members and the opportunity this amendment offers for early financial planning.
“While our minor voluntary membership scheme was previously open to children six years and older, this change now enables parents to start the savings plans for their children from birth,” Vodonaivalu said.
He added that the scheme allows savings for tertiary education and medical treatments.
Vodonaivalu highlighted the benefits of compound interest, noting that small, regular contributions would accumulate over time. For example, “The savings for a child registered at birth with regular monthly contributions of $50 would grow to $16,711 by the time they turn 18,” assuming a constant 5% interest rate.
Other benefits of the scheme, according to Vodonaivalu, include promoting strong financial habits, providing security against unforeseen financial events, and empowering families to save for major goals like a first home deposit.
Parents or guardians must submit birth certificates, certified photos, and identification to register minors. The minimum deposit to open an account is $10, with a monthly contribution requirement of $10. All deposits over $5,000 will be reported to the Fiji Financial Intelligence Unit in compliance with financial regulations.
