5 Reasons Why We Need To Prepare Retirement Fund Early

5 Reasons Why We Need To Prepare Retirement Fund Early. Financial freedom is when we no longer need to work from dawn to dusk, but abundant income still comes smoothly. We don't work for money, but money works for us. Isn't this really amazing? Especially Bismillahirrahmaanirrahiim when we have entered an unproductive age, ideally our focus is no longer busy making money but how to enjoy togetherness with our children and grandchildren and other religious activities.

Once upon a time a friend said to me, " Your job is good Rie, working as a civil servant gets a fixed salary and you can still retire later.  But I have no pension, after work my salary stops and there is no pension ."

I have heard statements like this several times, from different people. These questions that come out of the heart are now even more heart-wrenching during the pandemic. An unexpected situation, suddenly a massive pandemic occurred. 

My friend's question made me feel how important it is for us to prepare for retirement because in 10 or 20 years, we never know what other unforeseen circumstances might happen. It is unavoidable, but at least we have preparations, especially financially, to minimize the impact.

 Why Do We Need to Prepare for a Retirement Fund? What is the Purpose of a Pension Fund? 

Yes.. most of us must have that question and many more.
The simplest reason why we have to prepare a pension fund since we start working, so that when we enter old age we are no longer burdened with daily expenses, so that we can achieve what is called financial independence. Everyone hopes to achieve financial independence after retirement, and more importantly, to break the chain of the sandwich generation.
The sandwich generation is those who have to support their parents or other family members. For those who are married, in addition to having to meet the needs of their own families, this generation also has to bear the finances of their parents or other relatives.

When we're in retirement age period and the ability to carry the burdens of life has decreased, we hope that we will not be a burden to others even though they are our own family like our children. In addition to these basic reasons, there are many 
reasons why we need to prepare for retirement early and some of them are as below: 
  • The cost of living will increase by the time. Daily needs continue to grow and require more expensive funding from year to year.
  • The ups and downs of economic conditions are in sync with social polemics, political issues to the current pandemic. No one can predict when a crisis will occur, for example when there is a COVID-19 pandemic which has a wide impact, not only on the health aspect but also on the overall social and economic aspects affected by the pandemic.
  • Uncertainty about our jobs in the future because there is no guarantee whether we can be free from the threat of layoffs or the like that causes us to be unemployed (temporarily or for long time)
  • Unpredictable physical or health conditions. Yes, everyone wants to be healthy and fit until old and dead. But also the fact that when a person enters old age, health problems (degenerative) such as dementia, diabetes, impaired kidney function, lung function, hypertension, and other non-communicable diseases will become chronic and multi-pathological if not treated immediately. As figure out from just one aspect of disease, the estimated financing is not cheap and requires a relatively long time to recover.
  • In order to enjoy a more enjoyable and happier retirement if we can do good (help) others with the financial reserves we have.
In short, let me say “ productivity will surely decline by the age, but the cost of living will continue to increase. We will definitely retire, but living expenses will never retire. “

And important question that must be answered immediately is how to prepare a pension fund before retirement?

 What is Retirement Savings? 

As we know, our productive and effective time can work actively with the carrying capacity of our energy and mind which is prime, generally between the ages of 20 to 60 years. After that, you could say we are at a less productive age, that's what we call retirement age.
Retirement Savings is a number of funds collected in a certain amount (can be in the form of savings in a bank, investment or other current assets) which we prepare to meet all our needs when we are at an unproductive age (retirement).
In this unproductive age phase, it is very important to have an adequate pension fund. That's why, while still productive, it is highly recommended to allocate a portion of your income, regularly saving or investing. Considering that most people still do not have this passive income source. There are still many who are not aware of preparing funds or savings for retirement.

For those who work in government agencies or agencies that already manage employee salaries with pension facility coverage, they will automatically receive a salary called a pension when they are no longer working. However, for those whose workplace does not accommodate pension funds as suggested by some of my friends, and based on personal  finance  tips we ourselves must be active and take the initiative to manage income in order to have a pension fund.

 HOW  to prepare a retirement fund from EARLY ? 

In fact, many people are aware of the importance of retirement savings but it is difficult to make it a real. They feel it will be difficult if some of their income is set aside for retirement savings.

One thing we must remember, from every rupiah or dollar or euro or whatever we earn, we have the power to choose our oldness ( future ) we are rich, poor or middle class.

Everyone's retirement needs are different. Therefore, it is important to calculate and estimate retirement needs later. To calculate a safe retirement savings estimate, start by calculating your regular monthly expenses and then set a timeframe.

Retirement funds do not have to be in the form of money deposits that we usually keep in the bank, where the account is devoted to being used in retirement. There are several alternatives to preparing this retirement fund. But in my personal opinion, the one that is more flexible and can be implemented more quickly is to make retirement savings. 

In order to prepare for retirement so that you can continue to enjoy oldness with full enjoy any activities and NOT retire from the pleasures of life. Then commitment to saving for old age is one of the wisest ways to prepare for a better retirement.
Financial freedom is the top ladder of a person's financial condition, when someone already has investments or active assets that are able to generate adequate "regular salaries" to finance their daily lives (without having to continue working again), and do as much charity as possible.
Well, to start saving for retirement we need proper financial management. How to maintain a balance between the amount of routine expenses each day and how much you can save for retirement, we need a calculator to help calculate "how much is safe to save as a retirement fund?" of the income we receive each month. 

One of the recommended Free Financial Calculators to calculate how much income is safe to set aside as a retirement savings fund is CALCULATOR dot ME

FYI, in this calculator application there are several menus that can be used FOR FREE, namely the menu are: Loans Amortazation, Mortgages Calculators, Auto Calculators, Credit Cards, Savings Calculators and Financial Planning


 Free Financial Calculators 

With a retirement fund calculator, we can find out the amount that must be saved every month to reach the expected retirement fund. Use the retirement fund simulation below to get the numbers you need. For a simple practice, we can start by calculating an estimate of how much the average pension fund we need.

The average retirement age in Indonesia is 58 years with the life expectancy of Indonesians reaching 70-75 years. That is, we need to meet the needs of life during retirement which is about 20 years. In simple terms, if the routine expenditure per month is IDR 3 million, it means that in a year we need IDR 36 million, and within 20 years we need IDR 720 million to finance our own lives.

Once again, the illustration above is only an example. Yes… the variables can be adjusted according to each situation.

Overview of the Retirement Plan Calculator, which is a financial calculation application that functions to find out how much money you need to meet living expenses when you retire, and how much you have to set aside in savings each month. However, when calculating needs, don't forget to include the increase in inflation because the value of money today will be different from that in the future.

The simply use this calculator is by clicking on one of the menus that we need, it will display special help and instructions in the right column. For example, I choose to use the Financial Planning menu and the next step can be continued by entering variables according to the variables listed in the calculator application.


This Free Financial Calculator is suitable for use by anyone who needs a financial calculation tool because it has a variety of financial calculator menus that can be used for free either through desktops, laptops, tablets or cellphones.
At least but not the last, I believe Retirement Planning is Not Impossible.
Let's Plan our future life properly by start investing today, the sooner is better. With proper planning and starting quickly now, it is hoped that our savings will be able to fully finance our lives in the future.  The when the time comes for retirement, hopefully we can enjoy financial independence, not only for ourselves, hopefully it can also be useful for many people around us. 

So, are you ready to start preparing for retirement savings now, right ? Or maybe someone wants to share their experiences on how to prepare a retirement fund apart from saving in the bank? Feel free to write it in comment please...? 

Ririe Khayan

Assalamulaikum. Hi I am Ririe Khayan a Lifestyle Blogger and live in Jogya. I’m the Author Of Kidung Kinanthi, a Personal Blog about my random thought, parenting, traveling, lifestyle, & other activity as well as Personal & Working Mom Story. Kindly feel free to contact me at: ririekhayan(at)gmail(dot)com


  1. Sepakat sekali, menjadi tua dan pensiun itu pasti tapi kebutuhan hidup tak akan pensiun bahkan mungkin malah meningkat.

  2. saving money for retirement its something that not every society here in Indonesia do, biasanya mengharapkan adanya fasilitas pensiun dari kantor tempat bekerja tapi gak ada salahnya kan ya buat menabung untuk kepentingan pensiun di masa tua nanti

    1. informasi seperti ini memang harusnya disebarluaskan ya supaya setiap generasi yang bekerja keras bagai kuda tetap memikirkan masa pensiun dengan saving their money for sure

  3. Menyiapkan tabungan untuk hari tua penting buangett kok.. Kan kita gak mau ya ntar pas tua gigit jari aja.. menyiapkan bisa mulai sekarang meski usia masih kepala 2 atau 3 apalagi 4.

  4. Financial planning yg baik dan benar mutlak dilakukan ya Mba.
    Kudu disiplin, tetap teguh berjuang demi masa depan masing2.
    Jangan boros, pokoke kudu bijaksana kalo bicara keuangan, mahhh

  5. Setuju. Mesti jauh2 tahun menyiapkan keuangan ketika kita sudah tua nanti atau pensun dari pekerjaan. Adakalanya memang sulit mengelola keuangan, namun harus tetap diusahakan sebaik2nya. Menabung sejak dini dan mempersiapkan hari tua harus dilakukan sekarang juga.

  6. Nah itu dia yang difikirkan makanya penting banget buat saving saat ini apalagi kalau bukan sebagai pegawai ya mba mesti direncakan dengan matang untuk bisa saving moneynya

  7. Iya nih
    aku malah lepas untuk pertanggungan dana pensiunnya :(((((

    sekarang "persiapan pensiunnya" dengan budidaya jamur dan tanaman bibit mbak

  8. Pengen banget bisa kayak gini "We don't work for money, but money works for us."

    Tapi untuk bisa begitu tentu harus banyak dilakukan semasa muda dan aktif, tak lupa menyiapkan alokasi dana juga buat menghadapi masa pensiun, jadi pensiunnya udah enak dan tenang

  9. Cita-citaku financila freedom. Tapi hingga skarang belum ada tanda-tanda mengarah kesana. Kebutuhan untuk menghemat pengeluaran agar bisa saving lebih banyak harus aku lakukan nih

  10. Banyak usaha yang harus dilakukan untuk menyiapkan dana pensiun, apalagi untuk yang keuangan ya pas pasan. Tapi sebisa mungkin sedini mungkin juga untuk mempersiapkan dana pensiun, siapa sih yang nggak mau leha leha bahagia dan sehat saat masa tua ya mbk..
    Makasih buat sharingnya^^

  11. Memang penting banget nih, ada simpanan uang/dana di hari tua. Di saat udah gak aktif lagi dalam bekerja. Jadi di usia produktif gini udah harus siap-siap ya.

  12. Tapi kebanyakan orang kita bekerja untuk uang sih ya, apalagi dengan situasi seperti sekarang ini. Keputusan untuk menabung itu memang harus menurutku apalagi untuk hari tua nanti, aku lebih pengen tidak membebani anakku kelak sih.

  13. menabung untuk hari tua atau mempersiapkan masa pensiun itu memang perlu dilakukan sedini mungkin ya mbak
    biar di masa tua kita juga tetap bisa hidup mandiri

  14. An uncertain future, constant disasters, and changing socio-political conditions force us to think about how to live in our old age.

  15. Iya ini penting banget mbak, khususnya buat yang kerjaannya swasta kyk aku yg gk dapat uang pensiun hehe
    Terus terang emang agak memaksakan diri utk bisa nabung buat dana hari tua kelak, aku pun punya keinginan kalau bisa gak bikin repot anak. Harus dipaksa kalau gk agak susah emang nabungnya ya mbak.

  16. kebetulan suami lagi nyiapin buat pensiun dini. aku sebenernya belum siap mental sih. tapi mau ga mau yaa harus siap menghadapi kenyataan. ada aplikasi calculator dot me bakal bantu aku banget nih buat merencanakan dan merancang dana pensiun nanti. thanks infonya ya maak :*

  17. Sepertinya aku butuh tabungan dana pensiun juga nih. Sekarang bekerja keras, lalu nabung yang banyak dan kurangi buang-buang duit. Kita gak pernah tahu apa yang akan terjadi nanti. Aku juga gak mau bebanin orang lain saat tua nanti

  18. Dimulai dengan bismillah dulu kali yaa..
    Menyimpan uang untuk masa tua ini bisa membuat kita nyaman ke depannya dan jauh dari yang namanya Generasi Sandwich yang kini sedang hits.
    Semoga gak nyusahin anak dan bisa menikmati hari tua bersama pasangan dengan nyaman.

  19. Nah iya, kadang yang kita lupa itu bahwa harga barang di masa depan pastilah beda dengan sekarang. Kebutuhan juga pasti akan meningkat. Kalau aku sih mb prinsipnya berusaha biar ga ngerepotin anak-anak. Meskipun selalu mendidik mereka bahwa nanti kami orang tua ini pasti menjadi lemah dan semoga mereka berkasih sayang sebagaimana ketika kami masih kuat

  20. Menyimpan dana pensiun tuh emang penting ya maaaak.. karena kan buat jaminan kenyamanan hidup hari tua, biar sebisa mungkin ngga usah mengharapkan anak yaaa

  21. Kayaknya dana pensiun di lembaga lain pengelolaannya lebih tertib ya Mak dibandingkan nabung sendiri... kami belum terlalu berhasil dengan program hari tua ini...

  22. Aku ikutan pendi resign. Suamipun. Ya udah skrg di rumah aja g ngapa2in mak secara pendi kan jarang2 jadi nikmati kayak pensiunn😂😂

    Cuma skrg ya paling ngeblog gini mbak. Belum ada keinginann lebih gt buat giat ngejar dunia. Nikmati yg sekarang aja

  23. Salah satu yang pengen aku usahakan juga dari sekarang. Tabungan masa tua. Biar nanti hidupnya pun tetap baik-baik saja saat tua.

  24. Saving up to get a healthy retirement fund is one of a kind to escaping our child to be a sandwich generation. That's one of my main focus in our financial planning, tho. Bismillah..

  25. Good thought, and absolutely agree. Having retirement fund is a way to get a better life for us as a parent.

    1. we don't work for money, but money works for us... burn!!

  26. one of in my bucket list, financial freedom. Sedang berjuang menuju kesana. Insyallah bisa ! Bekerja bisa dari rumah kapan aja, tidak terikat waktu kantoran jadi waktunya bisa lebih banyak untuk keluarga

  27. Pensiun pasti akan datang ya kak.memang sudah seharusnya kita mempersiapkan diri sebaik mungkin.semoga kita semua sejahtera di masa pensiun nanti dan gak merepotkan siapapun jadinya

  28. I've been considering in preparing my retirement fund before 30 but then I have to back up my whole family financially because my parents don't have that much of money to live. It's been hard for me since I'm the only child so I guess I will start small and keep developing my skill to elevate my career then I'll be able to save more for the retirement fund :))

  29. I haven't prepared yet for this retirement fund although I want to spend my old time by traveling around the world. thank you for the tips ya Mbak Ririe!

  30. This article is my cup of tea, hahaha. Yes, i completely agree with this, prepare the retirement fund to have financial freedom in my 30th, hmm its little bit difficult. But, i wanna to do. 'Coz, i stuck in sandwich generation to cover up my whole family.

  31. kalau suami udah ada dana pensiun buat masa tua, tapi saya perlu juga nih menyiapkan tabungan masa tua biar tidak merepotkan anak nantinya.

  32. wah jadi makin mudah nih, kalau ada yang bantuin ngitungin gini ya, jadi bisa pasti berapa kebutuhan yang harus kita siapkan :)

  33. Nah, kadang memikirkan tabungan hari tua nggak terpikirkan ya. Padahal itu penting buat jaminan masa depan. Syukurlah nih ada kalkulatornya, bisa ceki-ceki caranya

  34. TAbungan hari tua harus mulai dipikirkan nih ya. Jadi dulu waktu siami masih berstatus karyawan sih santai-santai aja karena sudah di hitung oleh perusahaan. TApi sekarang, karena kita sama-sama freelance danbangun usaha sendiri maka harus memperhitungkan dana untuk hari tua nanti ya.

  35. Huaaa mulai sekarang kudu mikir ini, nih T___T

    “ productivity will surely decline by the age, but the cost of living will continue to increase. We will definitely retire, but living expenses will never retire. “

  36. Hidup itu misteri, kita ga tau apa yang akan terjadi nanti, better prepare segalanya dari awal ya, termasuk keuangan.

  37. Ya Allah semoga kalau tua nanti aku tetep bisa produktif dan punya banyak duit aamiin. Penting banget ya nyiapin dana pensiun sedih kalau tua ntar ga ada duit.


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