Of all the different retirement savings accounts, the South African provident fund is one of the most common and important to have when you’re saving up for retirement in South Africa. Not only do you need to know how much money you have in your provident fund, but you also need to understand how to access it and what restrictions are involved when doing so. If you’re currently considering contributing to a provident fund, here’s what you should know about it before signing up so that you can start saving effectively towards your future!
What is the Provident Fund in Namibia?
In Namibia, the Provident Fund is a government-run social security program. It provides coverage for employees and employers and pays benefits after the employee retires, dies or becomes disabled. The Government Employee Pension Board (GEPB) of Namibia administers the fund. There are two parts of the fund: the National Provident Fund and the Local Provident Fund. The GEPB operates the National Provident Fund, while municipalities around the country manage the Local Provident Funds.
How Much Does it Cost?
The total cost of the Provident Fund depends on how much your salary is. For example, if you earn N$2,000 per month and contribute 10% of your salary to the Provident Fund, it will cost N$200 per month. There are various options for contributions: you can give a percentage or a specific amount. If you want to know more about how much it costs, look at this document from the Ministry of Labour and Social Services which outlines all the details.
Who is Eligible?
To be eligible for a provident fund, you must have been employed for at least 12 months and earned at least N$8 000. If you are self-employed, you must have made at least N$4 000 for the past 12 months and paid contributions into the fund.
What are the Benefits?
A Provident fund is a type of retirement plan that is offered by some employers. Employers are required by law to offer provident funds if they employ 20 or more people. It’s often funded through a percentage of the employee’s salaries, but some employers offer it as a voluntary savings plan. The contributions can also come from employer contributions and government subsidies. Contributions should be made into the provident fund account every month and will be invested according to how the employer has set up the account.