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Retirement savings funds now K7.2million
THE Public Officers Superannuation Fund (POSF) Retirement Savings
Account has grown from an initial 30 members to over 200 members
with a total value of K7.2 million in reinvested funds since its
creation last year.
“We are now seeing a pool of existing members making the smart
choice to reinvest their funds instead of depleting their hard
earned savings through fast money schemes, gambling and bad
spending habits,” Leon Buskens, managing director of POSF Ltd,
said yesterday.
This change in mindset was a result of intensive awareness and
education campaigns that POSF had carried out this year, he said.
The Retirement Savings Account (RSA) was created to give members
an option of having their funds professionally managed in an
account with special benefits that are aimed at increasing the
lifespan of their funds.
“History has shown that a large number of retiring members were
withdrawing their funds and in the span of six months to a year
the funds had been depleted,” Mr Buskens said.
“This was largely due to the fact that we are not used to managing
large sums of money.
“Members are used to receiving a fortnightly income and when faced
with a lump sum of money and without proper counselling, tend to
go overboard on spending,” he said.
The RSA product is an option available to all retiring employees
and could be facilitated through the authorised superannuation
fund to which employees are currently contributing.
Members from various authorised superannuation funds had been
urged to take advantage of the RSA to assist them in their
retirement plan.
POSF also offers retirement counselling services for employees
nearing retirement or those who would like to start planning early
retirement.
 
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