Tarutia: Less than 10pc contributes to Nasfund

LESS than 10 per cent of the country’s population are contributing to their retirement, according to National Superannuation Fund (Nasfund) chief executive officer Ian Tarutia.
According to the company’s 2018 annual report recently released, Tarutia stated that this effectively meant 90 per cent of the people were missing out on superannuation benefits.
“Workers are entitled, by law to a comfortable life in retirement after active employment,” he said.
“Superannuation is for everybody, not just for a privileged few.
“Thus, our advocacy to promote universal coverage for all workers earning some form of income.
“Superannuation coverage should not be filtered by the number of staff an organisation employs.”
Tarutia further said the trend of members withdrawing their super savings early during times of temporary unemployment was worrying.
“Over 90 per cent of withdrawals today are by members aged between 20 and 30 years with balances with of less than K20,000,” he said.
“We caution members that frequent withdrawals while you are young means you will have less to live on and enjoy after you are retired from active employment.”
Tarutia said members should not forget that Nasfund was a retirement fund and not a bank.
“Savings are not for short-term financial expenses,” he said.
“Always remember your Nasfund savings should be considered a long-term investment that, over an extended period, grows significantly through the effect of compound interest.”
Tarutia said life expectancy for the citizens had improved and forecasted to average 63 years.
“This means our members are expected to live at least another 10 years after retirement at 55 years,” he said.
“Thus the amount of retirement funds must be sufficient to sustain a comfortable life for at least 10 years after retirement.
“This why we encourage additional voluntary contributions so members receive the full benefit of retirement funded by their Nasfund savings and not to be reliant on family, relatives or others after they leave active employment.”