Voluntary Contributions made today make for a Happier Retirement
Have you stopped to think how you will get by day-to-day when you are not working anymore?
In PNG, with no welfare safety net, it is very important that working people plan and save towards a comfortable and financially secure retirement.
Knowing you will be financially okay in retirement means you will be able to enjoy your time after work.
It is very likely you will want to use your superannuation savings to:
- Buy, build or renovate a comfortable home
- Buy a car or vehicle to move around when retired
And to be truly comfortable you will also need money so you can:
- Afford day-to-day expenses, like power, phone credits
- Pay for medical expenses
- Enjoy luxuries or food items you can not grow yourself.
Having a good superannuation balance means you will be able to withdraw the lump sums you need when you retire to build your home and set yourself up. But better still, if you save well you can still have enough to open a Retirement Savings Account, so your superannuation savings can provide a small regular income for your needs.
Voluntary Contributions are a sure way to more comfortable, happy retirement
In PNG, all people who are receiving employer superannuation also pay 6% of their salary into superannuation. You are permitted to increase this employee contribution Voluntarily to up to 15%. So, any contribution higher than 6% is known as voluntary contribution.
Increasing your Voluntary Contribution is a powerful step towards making your retirement dreams become a reality. The more money you have saved in superannuation means the more interest you earn each year when Nambawan Super announces our annual crediting rate.
It is always a good time to increase your Voluntary Contribution, however the sooner you do it, the more time your savings have to work for you to generate more interest and therefore more towards your happy retirement lifestyle.
See for yourself how Voluntary Contribution makes your savings grow!
Nambawan Super has developed a Superannuation Calculator so our members can see how making additional contributions, and saving for longer periods of time, make a BIG difference to your superannuation balance.
Put your personal details into our calculator, and then increase your employee Voluntary Contribution to 9%, 12% or 15% – and watch how your savings increase – not only through the money you save but the extra interest your savings earn for you.
K 10 a week
We’ve crunched the numbers and know even as little as K10 a week can really help boost your retirement savings. Click and find out.
Four people, four different employee contributions more than K100,000 difference
Joe, Mary, Julie and Frank all earn K25,000 per year. Joe does the normal contribution of 6% while Mary, Jerry, and Frank contribute more but at different levels. Assuming that Nambawan Super pays an average of 8% interest each year let’s see how they go after 20 years contributing.
Read about our members, Freddy and Anastasia’s who are contributing more to their Superannuation.
Home sweet Home – Housing Advance feature another benefit of Voluntary Contribution
As a superannuation fund, we will always encourage members to think about saving more to ensure a happier retirement. However, a feature of superannuation in PNG is the ability to access your employee contributions for a Housing Advance.
This means if you are considering how you will save a deposit for your first home (and principal place of residence) that boosting your Voluntary Contribution can help.
If you have been contributing for 5-years, you may be eligible to withdraw your employee contributions, including any additional voluntary contributions you’ve made.
How it works
After 7 years, a member earning K25,000, who contributes the mandatory 6% employee contribution will have K10,500 available for housing advance.
The bank will usually let you borrow around 9 times what you have saved as a deposit. Making the mandatory contribution would mean you could only borrow around 94,500. Whereas making a 15% employee contribution would mean you could borrow around K236,250.
NOTE: You will need to confirm your eligibility for Housing Advance with Nambawan Super and your lending eligibility with your bank.
3 easy steps to get your Happy Retirement started by boosting your Voluntary Contribution
- Download a Pay Variation Advice form for Employee Voluntary Contribution Deduction
- Complete the form, nominating your additional Voluntary Contribution amount or percentage
- Submit the form to your Payroll team for authorisation
The earlier you start, the more the power of compounding can work to your advantage to build your retirement savings.
For more information visit your nearest NSL Office or our call centre on 1599 Email email@example.com