FNPF to launch new retirement product that offers flexibility

FNPF to launch new retirement product that offers flexibility

By Navitalai Naivalurua
Sunday 27/11/2022
[Photo: File photo]

The Fiji National Provident Fund has announced that it would soon launch a retirement product that offers members flexibility and earns interest.

FNPF Chief Executive Officer Viliame Vodonaivalu says the new product, called the DrawDown Account (DDA) allows members to receive a monthly income, access withdrawals and earn interest on their balances.

He says eligible members will need to decide how much they want to invest in the DDA and must ensure that it is enough to afford them more than the minimum monthly payment which is $50.

Vodonaivalu says the maximum amount that can be invested in the DDA is $1 million per person.

The CEO says FNPF pensioners have often highlighted the need for their retirement products to be a bit more flexible, to allow them access to their funds, when the need arises.

He says like other retirement products, the qualifiers to purchase the DDA are those aged 55 years and members are entitled to make their retirement options covering life pension, term annuity, lump sum or a combination of each/all, medical incapacitation for those no longer able to work for medical reasons and sole nominees of members that pass away.

Vodonaivalu says the DDA offers members and nominees that level of access while they receive a monthly income and their balance continues to earn interest.

He adds there are no limits to the amount that a DDA holder can access through partial or early withdrawal, however, it must be within their DDA balance.

The CEO says this product will be available only for members and their nominees who qualify and is not for existing pensioners or annuitants.

He further says those who opt for the DDA can also fully withdraw their savings 12 months after first investing in the DDA.

He adds those who opt into the DDA can also have more than one DDA account, however, once they fully withdraw their funds before their payment term ends, they cannot use the same funds to purchase any other FNPF retirement product (Life Pension or Term Annuity).

Vodonaivalu adds that DDA account holders will be required to complete a renewal certificate two times a year (six-monthly), and funds will be paid to their chosen payment channel.

He says members who qualify for full withdrawal under Migration and Low Account balance will not qualify for the DDA.

The DrawDown Account product is expected to go live before the 31st of next month.

FEATURE NEWS
Brumbies claim 36-32 win over Drua to become first Australian side to win in Fiji
The Brumbies have become the first Australian franchise side to win on Fiji soil after defeating the Swire Shipping Fijian Drua 36-32 at the HFC Bank ...
5 hours ago
LATEST NEWS
Grieving mother honours late son at WOWS Fiji International Childhood Cancer Day event
An emotional Miriama Vosa was with the Walk On Walk Strong Kids Fiji team that celebrated International Childhood Cancer Day with a 3km Fun Walk and ...
6 hours ago

Upgrades underway as Suva Bus Stand renovation aims to tackle flooding and traffic issues
Fijians should expect ongoing progress in the coming weeks on the Suva Bus Stand as development continues with the excavation and removal of the ...
6 hours ago

Loyal fan travels from Bua to support Fijian Drua in season opener
An exciting moment for Ulaiasi Uto, who traveled from Bua two days ago to witness the Round 1 match of the Shop N Save Super Rugby Pacific between ...
8 hours ago

Authorities investigate fuel drum found in Suva Harbour as potential spill source
The fuel spill on Wednesday was likely caused by a red 44-gallon fuel drum branded ‘Total,’ which was found filled with seawater near Salia Reef. ...
8 hours ago

Prof Shameem stresses constitutional amendments must follow proper procedures
University of Fiji Vice Chancellor, Professor Shaista Shameem has stressed that any amendment in the 2013 Constitution should be done according to ...
8 hours ago



fijivillage Straight Talk with Vijay Narayan
Latest Videos

Stay tuned for the latest news on our radio stations

CFL radio frequencies
yb
IN DEPTH
World Radio Day
Radio remains one of the best mediums for news and information for a number of reasons and in situations such as natural disasters and political ...
2 days ago

Health Minister Dr Lalabalavu on fijivillage Straight Talk with Vijay Narayan
Health Minister, Doctor Ratu Atonio Lalabalavu on fijivillage Straight Talk With Vijay ...
10 days ago

PM Rabuka on fijivillage Straight Talk With Vijay Narayan
Prime Minister, Sitiveni Rabuka on fijivillage Straight Talk With Vijay Narayan. The in-depth interview will focus on many issues facing the ...
14 days ago

TOP