Nambawan Super announced they have commenced Employer Engagement to identify employers most impacted by Covid 19, to support their former staff, and members of the Fund, through the Covid 19 withdrawal process.
Paul Sayer, CEO Nambawan Super, said working with employers will ultimately speed up the application and assessment process for members making a Covid 19 Withdrawal.
“Before accepting applications Nambawan Super is awaiting the legislative changes, to be certain of what will be lawful.
“However, in preparation we have developed a Covid 19 Withdrawal Form and have made the necessary system changes based on our understanding of what the payment will be.
“We aren’t accepting applications yet, but are working closely with employers to ensure impacted members are ready to apply and the system can process the benefit once the payment is lawful.”
Mr Sayer said the Fund initially experienced an influx of enquiries, in our branches around the country, via the call centre and on Facebook, from members seeking the payment or generally seeking the opportunity to access some of their super.
“We have needed to clarify that the Covid 19 Withdrawal is a short term relaxation of access due to unemployment in unprecedented circumstances.
“It is a one-off assistance for affected members and will only be available to members who have been terminated and lost their jobs due to Covid 19.”
Nambawan Super has seen addressing the influx enquiries as an opportunity to build member knowledge about the purpose of superannuation and to ensure that member data is up to date.
“Superannuation is only for retirement or when you are no longer working – as specified in the Superannuation Laws,” Mr Sayer said.
“Covid 19 withdrawal takes money from the members’ own account – it is not subsidised in any way.
“As a result members’ will earn less interest, reduce their housing advance eligibility and ultimately, could result in up to K50,000 less in their account when they reach retirement age.”
Mr Sayer urged members’ should only access their savings as a last resort as history has shown members are best leaving their funds to continue to grow in the Fund to achieve their best retirement outcome.
“We know our members have dreams for themselves and their families in retirement, whether that is building a secure home, being able to travel or providing ongoing school fees or financial support for their families.
“Retirement dreams can only come true for members’ if they contribute and let their super saving grow over time.
“This experience highlights that more financial literacy is needed so that members save for emergency and crisis situations rather than relying heavily on Superannuation savings which are meant for retirement.”
This year Nambawan Super commenced delivery of a Member Financial Literacy training program, designed and delivered by a local trainer.
Covid 19 has slowed the roll out of the program, however Nambawan Super is pleased to have commenced this specialist training with members, and expect to grow training numbers once Covid 19 restrictions are lifted.
The training covers many things, including that members need savings outside of super that they can access in an Emergency.