Are you getting ready to retire?
Choose to retire in style with Nambawan’s Retirement Savings Account (RSA).
With Nambawan’s RSA you’ll get regular payments, while the money you’re not using remains invested and continues to grow.
What is an RSA?
An RSA is an account created within Nambawan Super Fund specifically for retirement benefits. It is managed by the same professionals as the Super Fund and earns the same rate of interest as the Fund.
It allows you to preserve your retirement savings so you have access to funds for a secure and comfortable lifestyle after you retire. It removes the temptation to spend your retirement savings in one lump sum, which could leave you with nothing to support you for the rest of your life.
Why you should open an RSA
The concept of having your savings professionally managed so they can continue to grow and provide an income after retirement is not well established in PNG. In fact, many Members tell us they plan to use their retirement savings to establish a small business so they can continue to earn an income.
The RSA was created to help Members, who have finished work, to use their superannuation savings to replace their income. Some RSA Members choose to receive 1 or 2 lump sum payments a year instead of a regular fortnightly payment. Either way, the larger your roll over balance, the more interest you will earn to provide for you longer into retirement. The more you have in RSA, the more interest you earn each year. At Nambawan Super, we have a team of professionals who know how to invest money so that it continues to grow. Our Members, such as teachers, nurses, police officers and hotel workers, are not professional investors. It is a big change to leave your profession which you are very experienced and skilled at, to then be expected to wisely invest large amounts of money so it can last throughout your retirement. Add to that pressures from family and other demands, Members have told us they can find their lifetime savings spent or distributed quickly. With a Retirement Savings Account, Nambawan Super’s professional investment division looks after your money for you, and you can enjoy a regular income paid to your account.
Benefits of RSA
- Significant tax savings
- You choose how you want your funds paid to you
- Prudent professional funds management
- Financial guidance and advice
- Access to the Member Discount Program
- You choose who receives your benefits in the event of your death
Who is Eligible to open an RSA?
- Any Member who has reached the retirement age of 55 years;
- Members who have yet to reach retirement age and have ceased employment and have not secured new employment within a 12-month period;
- Unemployed for more than 12 months on medical grounds or due to termination of employment on other grounds.
- Existing Members of other authorised superannuation funds.
- Beneficiaries of deceased contributing Members or RSA Members are also eligible to open an RSA.
- The minimum amount you can save is K10,000 and the maximum amount is K250,000.
Meet RSA Champion Mr Hau’ofa Sailasa
This retired career public servant is doing what he loves the most today with his Nambawan Super RSA – gone fishing!
Read more about how you too, can save more while you work, and enjoy a comfortable retirement! You don’t have to be tied down with little to no finance, even after you’ve stopped working.
|Less tax||Tax is normally charged when you withdraw your retirement savings. You will not have to pay this tax on benefits transferred to an RSA provided you meet the conditions of this account. In addition, you will not pay income tax earned from your savings, which means more money for your retirement years.|
|Flexible Payments||You decide how you want your funds to be paid to you. You can choose to be paid fortnightly, bi-annually (every 6 months); or both.|
|Investment Power||These funds form part of the investments by the largest and best-performing Superannuation Fund in PNG. Your funds will be invested in a safe and secure investment portfolio managed by Nambawan Super. The investments will earn interest that is credited annually to your account.|
|Support||Retirement Financial Counselling is available to members at any time to ensure the best choices are made and to help members live comfortably in retirement.|
Understanding Tax and your Super
While RSA can be an effective way to help fund and secure a comfortable lifestyle, understanding the tax rules, could provide you the benefit of significant tax savings.
Less than K10,000
|100% can be withdrawn in a calendar year, tax free|
|K10,000 but less than K20,000||50% of balance can be withdrawn in a calendar year, tax free|
|K20,000 but less than K100,000||30% of balance can be withdrawn in a calendar year, tax free|
|K100,000 to K250,000||20% of balance can be withdrawn in a calendar year, tax free|
Important note: Any withdrawal over the annual prescribed amount will be taxed at 30 percent.
Talk to us on 1800 1599 or email: CallCentre@nambawansuper.com.pg to see how an Retirement Savings Account could work for you.