Every worker wants to fill their retirement with happiness and prosperity. If this is one of your life goals, you need to prepare for a retirement fund from now on.
When getting old is inevitability, the same thing will happen to workers: Experiencing retirement as the final phase of their career journey. At this point, regular income at work will no longer happen, but expenses continue to exist.
With expenses that keep coming, of course, retirement can be a worrying specter. Instead of enjoying retirement happily, it ends up being a burden in the family.
Don't let this happen in your retirement. You have to prepare a retirement fund so that you can enjoy a happy and prosperous old age.
Here’s how to do it:
1. Estimate How Much Money You Need to Retire
You can find out how much pension fund is needed to ensure your happy retirement. Take the opinion of experts as a reference, that each worker needs about 80% of the final pre-retirement salary.
So, for example, you are currently earning around IDR 200 million per year. You will need a pension fund of at least IDR 120 million per year. This figure is an estimate for your comfortable standard of living in old age.
2. Calculate Retirement Period
The Central Bureau of Statistics (BPS) stated that the life expectancy of the Indonesian people in 2020 reached 69.59 years old for men and 73.46 years old for women. You can use these numbers as a reference in preparing your retirement fund by calculating how much time left from retirement to your remaining age.
If a worker retires at 55, he must have a pension fund for living expenses of about 10-15 years. In that way, for example, you are currently 25 years old and will retire at 55 years old, then you have time to prepare as a retirement fund for 30 years.
3. Change Your Lifestyle
When you are committed to preparing a retirement fund, it means you have to change your lifestyle. Don't fill your productive time by being consumptive; it's time for "trouble first, have fun later".
You have to prioritize which ones are most important, not because you can and want to have them. This mindset is to ensure that your retirement planning continues to run according to your expectations.
4. Define Your Retirement Lifestyle
How do you want your life in your old age? You can decide from now on: Whether you wish to live quietly in the countryside for farming, or taking up a new hobby that you have never done before.
By determining your lifestyle in old age, you can do a lot of planning regarding retirement fund and what to do to enjoy retirement. In old age, it does not mean you are not productive anymore.
5. Ensure with Insurance
All your retirement planning will deal with various life risks. Instead of having a pension fund, you might experience losses due to risks that occur, such as getting sick or having an accident that you have to pay for yourself.
With insurance, you can ensure that your retirement fund can continue to run according to your old age goals. If you are committed to having a retirement fund, prepare a long-term solution from Sun Life Indonesia by clicking the following link for a more prosperous and happier old age.