“An ACT to establish a National Provident Fund” Cap 219 was enacted on 1 August 1966. The Act followed British tradition and similar funds can be found from Samoa to Swaziland. The general idea was that, in the absence of a State-funded pension, a compulsory savings scheme would be established to allow workers to save during their working lives that would then provide them financial security in retirement.

While the FNPF Scheme allowed the collection of savings through employer and employee contributions, it did not provide a basis for a payout phase or “retirement income”. Until the mid 1970s, the only choice for members was to receive a lump sum payout at entitlement – which is at retirement at the age of 55.

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