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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.

Related terms

  • education fundMoney set aside specifically for children's school costs.
  • expense record bookA daily record of money in and out to monitor spending habits.
  • debt ratioThe comparison of total installments to monthly income.
  • family budgetA plan for dividing monthly income into spending categories before the money is spent.

Definitions in this glossary are educational. For documents that are legally or financially binding, confirm with the party that issued them.

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The calculators and guides here are educational and are not personal financial or legal advice.