Disclaimer
The results obtained from these calculators are for general purposes only to illustrate the effect of compound interest and are not intended as a substitute for professional financial advice. Before making any financial decisions on the basis of these results, you will need to consult with an independent financial planner or accountant as well as consider whether the advice is suitable to meet your personal financial objectives and circumstances.
The actual performance of any investments will depend on future economic conditions, investment management, fees and taxation. Past performance is no guarantee of future performance and as a result of this, all the results are hypothetical and are NOT GUARANTEED.
Nambawan Super specifically disclaims any liability for any direct, indirect, incidental, consequential or special damages arising out of or in any way connected with the access to or use of these calculators. To the extent permitted by law, under no circumstances will Nambawan Super be liable for any loss or damage caused by a user's reliance on the information by using these calculators.
Assumptions
Projected super balance at retirement:
The projected total super balance takes into account your starting balance, employee and employer contributions, any additional voluntary contributions as well as interest earned between now and your retirement.
Retirement age:
We have assumed a default retirement age of 65. This can be adjusted in the calculator.
Working life:
The calculator assumes that you will have a continuous working life with no breaks up to your retirement age.
Interest rate:
The default investment returns have been set at 6.0%. This is based on the Nambawan Super 10-year average interest rate.
Employee contributions:
PNG Superannuation laws dictate that 6% is the mandatory minimum contribution for employees to make. Employees may choose to contribute more than the minimum.
Employer contributions:
PNG Superannuation laws dictate that 8.4% is the mandatory minimum contribution that employers have to make. Employers may choose to contribute more than the minimum.
With Nambawan's Retirement Savings Account, you'll get regular payments, while the money you're not using remains invested and continues to grow.
What is a Retirement Savings Account?
A Retirement Savings Account (RSA) is an account created within Nambawan Super specifically for retirement benefits. It is managed by the same professionals that manage Nambawan Super and earns the same rate of interest as the Fund, and other normal contributing Members.
It allows you to preserve your retirement savings so you have access to funds for a secure and comfortable lifestyle after you retire. It discourages 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
Our Members, such as teachers, nurses, and police officers, 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 manage and invest large amounts of money so it can last throughout your retirement. Adding on the pressures from family and other demands that may come when you retire, many Members have expressed that they often find that their lifetime savings are spent or distributed quickly and do not last them long in retirement.
The RSA was created to help Members, who have finished work, to use their Superannuation savings to replace their income. 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. The less you withdraw and spend from your RSA, the more interest you continue to earn each year.
Benefits of RSA
- Significant tax savings when funds are accessed within the legislation limits,
- Continued interest growth on your 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 is exiting the Fund on retirement basis (who has met the eligibility requirements for retirement exit).
- Exiting Members of other Authorised Superannuation Funds (ASF).
- Minors who are 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.
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.
RSA Counselling is available to Members at any time to ensure the best choices are made and to help Members live comfortably in retirement. You can book a session with our counselors through our online training request form.
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.
| Balance | Tax Implications |
| Less than K10,000 | 100% can be withdrawn in a calendar year, tax free |
| K10,000 but less than K20,000 | 50% of the balance can be withdrawn in a calendar year, tax free |
| K20,000 but less than K100,000 | 30% of the balance can be withdrawn in a calendar year, tax free |
| K100,000 to K250,000 | 20% of the balance can be withdrawn in a calendar year, tax-free |
Important note: Any withdrawal over the annual prescribed amount, the excess amount will be taxed at 30 percent.
