retirement fund
Also called: tabungan pensiun
Money gathered so living needs remain met after stopping work.
What it means
A retirement fund is money prepared so the family still has income when working years end. This fund is collected during the productive years, whether through savings, investments, or an official pension program. The goal is to keep living needs met without depending on children.
Why it matters for families
At retirement, monthly income usually drops or stops, while living needs remain. Without a retirement fund, families risk depending on others' help or selling important assets. Preparing this fund from a young age gives more time for it to grow.
Example
For example, someone aged 30 wants to have a retirement fund of Rp500 million at age 60. They need to set aside part of their income each month and manage it with discipline. This figure is only an illustration, not an official benchmark, and needs to be recalculated according to circumstances.
Common misunderstanding
Many people think a retirement fund is only for employees who have a company program. In fact, self-employed workers also need to prepare one themselves regularly.