Barobe’s advise on saving

WHEN Michael Barobe joined the public service as a teacher in 2002, he joined more than 60,000 teachers as members of Nambawan Super.
Today, as the chief executive officer of the Pacific Institute of Leadership and Governance, he continues his membership.
Barobe, who recently graduated with master in business administration degree is urging more Papua New Guineans to make saving a habit to secure a comfortable retirement.
“I joined the public service as a teacher, which was when I became a Nambawan Super member,” he said.
“This is where most public sector employees keep their retirement savings.
“Nowadays, it includes everyone – the public service, private or informal sector and expatriates.
“As a teacher, my family had the advantage of housing provided at the secondary schools I taught at in Hela and Southern Highlands.
“I taught at Tari High School, Mungol Secondary and Ialibu Secondary.
“After achieving my postgraduate diploma in teaching, I was accepted as a trainer in Accounting and Business Studies at the Institute of Public Administration.”
He started thinking about how to buy a home when he retires – to save through a bank or through Nambawan Super.
He had worked with the PNG Banking Corporation under its graduate development programme after graduating from the University of Technology with a bachelor in business studies so he had some commercial banking knowledge.
“I knew voluntary contributions with Nambawan Super was the best option for me.
“I began in 2007 with a fortnightly contribution of K50, in addition to my mandatory contributions.
“My family was also a big part of this new journey, so it was a family decision.”
Last year, more than 10 years later, he decided to look at his statement.
“I was so excited, it was so much more than I expected.
“Apart from the voluntary contributions I had made, I realised my contributions had earned a really good amount of compound interest, which no commercial bank could have afforded me.”
His advice to young people is not to spend recklessly and become a burden to your family.
“Start voluntary contributions now, and you’ll be happier than me by the age of 50 or when you decide to retire.
“I am now the CEO at Pacific Institute of Leadership and Governance at the Institute of Public Administration.
“I am contributing the ceiling amount (15 per cent) from my salary for voluntary contribution. I have seen the advantages. The more you save, the more interest you earn.”