The concept of superannuation has not been fully embraced by the majority of the people as a good way of saving for the future due to a lack of proper awareness on the subject, but this is now starting change.
That’s the word from the Bank of Papua New Guinea (BPNG) Acting Governor Ms. Elizabeth Genia when speaking at the recent Pacific Islands Investment Forum (PIIF) that was held in Port Moresby city. She said majority of the people living in rural communities, engaged in any form of informal business don’t really embrace the savings culture.
However, the Bank continues to make ways to change all that alongside its stakeholders to push for a wide coverage of financial inclusion programs, which includes the importance superannuation.
“So, it’s no surprise that superannuation, as a way to build a financially secured future has not been embraced by people who may not be employed and therefore, not required to make superannuation contributions.”
However, the Bank’s Acting Governor said this should change with the efforts already underway. “For more than a decade the Bank of Papua New Guinea has been involved in working towards financial awareness activities and the last ten years, as an integral part of Center for Excellence in Financial Inclusion (CEFI).
“Financial inclusion, the desired outcome in which all members of our society must have access to basic financial services is now driven by the National Government Directive Financial Sector Development strategy.”
Through the financial inclusion programs, the concept of superannuation is also driven so to ensure more people fully understand its concept and embrace it as a means of savings.