29 January, 2023, 3:26 pm Central - 28°C Rain

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.

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