Monday 14 March, 2016
Members savings still robust
NASFUND says its contributions inflows are greater than withdrawals.
But the FUND is also mindful of the gap between what is receiving as contributions and what it is paying out of members as due entitlements.
CEO, Ian Tarutia said that NASFUND statistics show it received K444 million in contributions and paid out K260 million in 2013.
It also received K459 million in contributions and paid out K348 million in 2014 and received K473 million in contributions and paid out K408 million in 2015.
Mr Tarutia said the decreasing gap signals the high un-employment trend in private sector as more and more members apply to tak out their savings.
“The gap between what we are paying out and what we are receiving is actually getting smaller.
“This is what we are watching as a going concern,” he said.
He assured members, that the FUND is still strong despite the economic challenges. He again reminded that Member superannuation savings are for a long term investment.
“It is not a bank account. It will always grow in the long run outpacing inflation through the effect of compound interest.
“Members should not focus on the year to year returns as fund performance is subject to market fluctuations. Returns can be positive or negative, high or low but through investing in a balance fund portfolio with assets that provide secure long term returns, members will be guaranteed positive growth in the long run.
“Over the last 10 years the FUND has paid positive interest to members averaging 12 per cent and totaling over K1.65 billion,” he said.
As of 2015, the membership stands as 515,535 in total with an active employer base of 2383.
(Article by Post Courier published Monday, March 14th 2016)
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