Monday 11 April, 2016
NASFUND reports rise in early withdrawals.
The challenging economic environment is forcing superannuation members to make early withdrawals from their retirement savings, says National Superannuation Fund (Nasfund) chief executive officer Ian Tarutia.
Tarutia said the fund had noted an increase in the number of members applying for early exit withdrawals from their savings which goes against its purpose.
“ There are no current major projects in the country, and the economic challenges that the country is facing is causing a lot of organizations’ especially in the business sector to review their cost restructures,” he said.
“As a consequence, there are a lot of unemployment and these are our members being unemployed. So when they finish after three months, they have nowhere to go and they come in the numbers to withdraw their savings.
“They are not thinking about if it’s a retirement savings.
“We are dealing now with the volumes because of the current situation where there’s no new job, and the economic environment is very challenging.”
Tarutia said there should be some gaps in the Superannuation Act which should also be looked at to address the issue of early withdrawals.
“Here in PNG, the ACT has certain provisions that allow for early access to their retirement pool.
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