Do you know how important retirement planning is? Since nobody will be working forever, it would be important for your future.


Productive and Non-Productive Period

In general, people start working at 25 years old, and retired at 55 years old. If you count down the period between working until retirement, people spend around 30 years for working, during their productive period.

If you live until 80 years, it means you need to prepare for living expenses for 25 years ahead. So, how can you fulfill that?

Finansialku provides an e-book for your financial planning. Download it here.  


Change in Spending, and Income Habit

Do you know that there is a change in your income, and spending habit when you are retired?

As you can see, when you are still productive, you earn more money and also spending more. Buying a car, a house, paying down debts or children’s education, and other spending. But as you get older, your income will decrease along with the spending.


Income Gap

Although there are less spending, your income is decreasing a lot more than the spending, when you are retired. This condition is called an income gap.

The gap will get even bigger if you don’t prepare for a retirement plan.

Imagine that you are retired at 55, and you prepare to open a business at that time.

At that time, it will be much way harder to do that because of your productivity decrease, and will take a longer time. Also, people usually are afraid to lose more money if they open a business.


What Is Retirement Planning?

A retirement planning is a way or strategy to achieve financial goals when someone is retired. One of them is to fulfill living expenses for the rest of his/her life when he/she is retired.

There are people who still need to pay for their children’s education, and other debts, when they are retired. Not to mention, the emergency situation that forces people to spend money.


The Benefit of Having A Retirement Planning

So, why you should have a retirement planning? Let’s check out some of the benefits sorted out for you.


#1 Estimating Money

With a retirement plan, you can figure out the amount of money you’ll need during retirement.


#2 Investment Period

You’ll know how long to invest to prepare for a retirement fund.


#3 Investment Map

With a retirement plan as your map, you’ll know how to direct your investment with clear targets.


#4 Lifestyle

You can develop a moderate or frugal lifestyle, because you know that you need to save, and invest for retirement. This also will become a habit when you are older, so you don’t have to worry about spending more.


#5 Possible to Still Have Income

You can still have income from a deposit, passive income, and other incomes.


#6 Avoid Mistakes

You can learn to avoid mistakes in preparing for a retirement period. Such as mistakes in managing cash flow, debts reduction or managing asset.   

 You don’t have to worry, because now you can use Finansialku application that provides tools to create a retirement plan.  Download it using buttons below.

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How to Make A Retirement Planning

After knowing the benefits, hopefully, you’ll realize that having a retirement plan is important.

Now let’s see some ways to make a retirement plan.


#1 Make the Most of Your Productive Age

While you are still productive, you can do several things to prepare for a retirement period.


#1 Upgrade Knowledge

Expanding your knowledge about financial planning, investment, insurance, and other related knowledge. You can read daily news, and report about them from  


#2 Build-Up Asset

Increasing your asset such as paper assets, digital assets, or real assets, to create sources of income when you are retired.


#2 Calculate the Retirement Fund

Calculate how much money you’ll need, and the financial goals you want to achieve when you are retired.

Your needs will depend on your lifestyle, and financial condition, which is different for everyone, and many other factors you can’t control. Consider also inflation factors that increase annually.

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Give yourself some time to think over these questions such as:

How long will I live? How healthy my body will be? What are fascinating things I want to do? What are emergency events that might take place?


#3 Decide How Long to Prepare the Retirement Fund

After knowing the amount of the retirement fund, you can count the period of time to prepare the fund. Say that the retirement fund is Rp 400 million. If you prepare for 5 years, you’ll need to allocate at least Rp 80 million each year. But if you prepare for 20 years, you just need Rp 20 million each year.

The longer the time, the less the budget to allocate for the retirement fund.

 As you can see, this calculation excluded the inflation, and interest rate factors. To get more accurate result, you need to consider both.

To help you calculate the retirement fund easily, and quickly, use Finansialku apps.


Learn more about how to calculate for your retirement fund on this video!


#4 Decide How Much Money for Saving, and Investment

Now you can determine the amount of money you should save, and invest from now, according to the retirement fund.

You can do it manually or through Finansialku apps.


#5 Make the Investment Strategy

Investment is an instrument to accelerate, and grow your wealth. You can use it for at least two purposes, capital gain, or cash flow. Today there are a lot of instrument of investment, and are easy to be accessed.

At least there are 3 types of investment namely paper asset, digital asset, and real asset.

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For paper assets, people tend to use the deposit, consider its low-risk, and a relatively higher return. Generally,  there are 2 types of the deposit that you can choose, deposit with the simple interest, or deposit with the compound interest.


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#1 Deposit with the Simple Interest

This interest is count based on the initial amount of savings account. The growth is linear.


#2 Deposit with the Compound Interest

This interest is count based on the interest of an initial amount of your savings account, and its accumulated interest from time to time.

Unlike the linear growth of the simple interest, the compound interest multiplies your money in exponential growth.

Therefore, the best choice to grow, and accelerate your retirement fund via deposit is through the compound interest.

Investment products vary and can be adjusted according to your goals. Because investing for retirement fund is a long-term goal, you can choose an instrument that serves this type.

Among them is gold. It is a proper investment for long-term goals, and the value increases each year.

You can read an ebook about investment from Finansialku. Download it here!


#6 Find Out Other Sources

Other sources for your retirement fund is from the company where you work, and the government.


#1 Company Program

If you are lucky, a company can give 10% of donations from your salary that will be saved in an investment such as a deposit or mutual fund. The amount will increase given that there is a rise in salary and will grow as long as you work there.

But, there is also a company that gives no retirement fund for its employees. Therefore, before signing a contract, ask if the firm has a retirement program, and what kind of service the program covers.

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#2 Government Program

Another source is from the government retirement program. In Indonesia, this program is provided by BPJS Ketenagakerjaan, which you can check in

For the retirement fund, the amount is 5,7%, 3,7% from the company, and 2% from the employees. This fund can be received when:

  • An employee reach 55 years old, or die, or experience permanent disability.
  • Laid off from the firm after becoming a member at least 5 years with waiting period 6 months.
  • Go abroad and didn’t come back.
  • Become a civil servant/TNI/Polri.


#7 Look for A Financial Advisor

Making, and preparing for a retirement plan is not an easy task. Therefore, if you are still unsure or really need professional help to prepare for the retirement fund, you can hire a financial advisor.

They are people who are professional, credible, and following the ethical code of a planner. They will help you make a retirement plan according to your income, goals. They help choose the right investment instrument, along with an analysis of risk management. They also can help allocate your money to reach the retirement fund.

If you need them, financial advisors with an active CFP®, and following the ethic code of profession of a financial planner from Financial Planning Standards Board Indonesia of Finansialku team, are ready to help you. You can contact them here.



Everyone hopes to retire with an income that can sustain their life during the retirement period. With retirement planning, that hope can be achieved.

Prepare for a retirement plan, and fund takes time and diligent effort. Therefore the best time to do that is now when you are still productive.

When you are already in your mid-50, it is a difficult thing to do. But, don’t worry because, with the help of a financial advisor, you can prepare for retirement planning.


Hopefully, this article is useful and gets you started making your retirement plan now. Share also with those who also need to know this information.


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