Tips on member contributions

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The National, Thursday July 9th, 2015

 By GARY TUNSTALL – Nambawan Super chief executive officer

 

BY making extra contributions, you will boost the amount of super you have when you stop working. 

Start now so you can relax later.

There are lots of reasons why you should grow your super as much as possible:

  • The cost of living would increase over time;
  • the tax benefits of super (salary sacrifice) would make it a good way to invest;
  • the compounding effect on interest accumulation would be maximised;
  • compulsory saving when 
  • iscretional saving was often difficult;
  • professional people managing your money; and, 
  • Average returns over the last 10 years are approximately 13 per cent.

 

Sacrifice some of your salary

 

This is when you and your employer agree to pay a portion 

of your salary as an extra contribution (up to an additional 6.6 per cent of your salary before tax) to super. 

This is a tax-effective strategy for Papua New Guinea workers.

 

Make after-tax super contributions

 

You simply ask your employer to deposit additional after tax pay into your super. 

These are called after-tax super contributions. 

This is different from salary sacrificing, which happens before your income is taxed.

 

Self-employed super contributions

 

Nambawan Super’s Choice Super voluntary contributions account caters for workers in the informal sector or employers employing less than 10 employees.

Informal sector workers such as those in cash crop farming, fishing, poultry farming, running a trade store or a PMV (public motor vehicles) can make voluntary contributions to superannuation with a minimum of K20 fortnightly. 

Since 2010, NSL had been growing its voluntary contribution products aggressively. 

There are 15,200 NSL members  doing voluntary contributions as at May 31, 2015, with a total balance of over K46 million. 

Saving today for the longer term provides a hedge against inflation and will ensure PNG workers enjoy a decent living in retirement. 

Nambawan Super members intending to do voluntary contributions should visit an NSL branch to have requests facilitated.