The National, Wednesday March 12th, 2014
superannuation should cover all workers in Papua New Guinea.
At present, it covers only workers who are employed by organisations who have a minimum of 15 starr.
Nasfund chief executive Ian Tarutia said yesterday the growth of superannuation savings was far more beneficial to individuals in the long run through the effect of compound interest compared with bank account savings.
He said: “At the moment, around half a million workers out of a working population of around two million people have a nest egg to look forward to after active employment.
“What about the rest of the population? Who will they turn to in times of need when it is required?
“Enforced savings for one’s future benefit should be for everyone and not just a few.”
Tarutia was addressing more than 316 participants representing 176 employer organisations on the superfunds 2013 results at the first annual Nasfund employer conference held yesterday.
He warned members that the superannuation savings was for retirement.
Do not withdraw if you do not need to, Tarutia said, adding that investment cycles have good years and not so good years.
Even with low interest, savings would grow over an extended time through compound effect.
Tarutia said investments would be made in line with the fund’s risk management Strategy.
Last year, Nasfund performed strongly, giving an 11% credit to its members on the back of net asset value of K3.356 billion, up 20% from 2012.