Teaching financial literacy vital

SUPERANNUATION companies such as Nambawan Super Limited (NSL) have to come up with financial literacy programmes to help people retiring who want to start businesses.
NSL chief executive officer Paul Sayer said during an employer conference in Port Moresby on Friday “superannuation is about retirement. It is not about solving every other problem”.
“The purpose of superannuation is to put money aside for a period in your life where you no longer have formal employment,” he said.
“When we talk to so many people about what they are going to do when they retire, the first thing they say is to do some sort of work.
“Typically they state that they want to set up some sort of small business in the informal sector to (keep them occupied).”
He said some wanted to open a store, others to operate a bus or taxi.
“The whole idea of superannuation is to put money away so you do not have to work. We have enough for all of that. People might still want to do that to be active in their villages.”
Sayer said the NSL would be developing financial literacy programmes this year.
“Often people seem to think that superannuation is a solution for everything. Because we have been so successful at keeping money for our members, people look at that pot of money and start to think that what else it is going to be used for.
“So the challenge is always about the primary purpose – that this money is for people’s retirement, it is not to solve every problems.”