prepare your retirement fund

          Friends, in the stages of human life, we will not be productive forever and there will be a time when we will enter retirement or old age. Have you ever thought about your old age yet? What will our life be like then?

          Retirement is a period when a person has reached a certain age and is required to stop working. On the one hand, this period is quite anticipated because you can finally rest and enjoy old age with your family. But on the other hand, this retirement period brings concern The major issue is typically one of financial sufficiency for retirement or old age. Then what can you do to prepare independent sources of finance in retirement? Buddy can repay the pension fund contributions from now on.

           Pension Funds are legal entities that manage and run programs that promise pension benefits, including Pension Funds that carry out all or part of their business according to sharia principles. Pension Benefits are periodic payments paid to participants in retirement in the manner stipulated in the Pension Fund regulations.

There are several types of institutions that organize pension funds, each of which has specificities and rules, namely:

1. PT TASPEN, an Indonesian state-owned enterprise engaged in insurance for old-age      savings and pension funds for the State Civil Apparatus (ASN) and State Officials.
2. PT ASABRI, an Indonesian state-owned enterprise engaged in social life insurance which is held compulsorily by law and provides financial protection for the interests of TNI soldiers, members of the Indonesian National Police and ASN of the Ministry of Defense/Polri.
3. Employer Pension Fund (DPPK) Is a pension fund established by a person or entity that employs employees, as the founder, to organize a Defined Benefit Pension Program or a Defined Contribution Pension Program, for the benefit of some or all of its employees as participants, and which creates liability for Employer.
4. Financial Institution Pension Fund (DPLK) Is a Pension Fund established by a bank or life insurance company to organize a Defined Contribution Pension Program for individuals, both employees and self-employed workers, which is separate from the employer's Pension Fund for employees of the bank or life insurance company concerned.
5. BPJS employment Is a public legal entity formed through Law No. 24 of 2011 concerning Social Security Organizing Bodies with the aim of realizing the implementation of providing guarantees for the fulfillment of proper basic needs for each participant and/or their family members. The function of BPJS Ketenegakerjaan is to organize employment social security programs based on Law No. 40 of 2004 concerning the National Social Security System which consists of Work Accident Benefits (JKK), Old Age Benefits, Pension Benefits and Death Benefits.
   
   
   

Here are some things that make it important to have a Pension Fund

1. As a means to achieve an independent retirement - Shrinking income in retirement is not directly proportional to needs, therefore the benefits of pension funds will be very helpful to finance these various needs. Some expenses in retirement may be reduced, one of which is transportation costs because generally a person's mobility in old age will be much less than when he was still actively working. Given that the number of pension benefits is limited, their use needs to be carefully regulated, so you don't get confused because the expenses are far more than the income you currently have.
2. Avoiding the Sandwich Generation Trap - The sandwich generation is simply adults who bear the living costs of their children and their parents (the previous generation) simultaneously, in other words, like a sandwich, this generation is squeezed by the generation above and below it. To prevent our children or grandchildren from becoming a sandwich generation, we must prepare for it at least by having a pension fund.
3. As Business Capital - Many retirees decide to open a business as their new financial foundation when they reach retirement age. Well, the benefits of the pension fund received in part can be used as capital to open the business. It would be much better if the business plan has been thought of long before retirement arrives. More careful planning will make the process of starting a business much easier. Especially if by chance the field of business being carried out still has something to do with the work being carried out at this time so that the way to open your own business will be opened wider.

Things to Look For in Using Pension Funds

1. Financial Ability - Basically, participating in the Pension Fund program does not require a large fee. However, you also need to pay attention so that the large pension fund contributions do not interfere with the financial health of your other friends.
2. Fees - It has been ascertained that the Pension Fund organizers, both DPPK and DPLK need funds. Compare carefully the costs that will be charged with the benefits and services obtained.
3. Time - The earlier you prepare for retirement, the lighter the costs you have to spend each month. The longer the saving period, the greater the accumulation of funds that can be obtained for old age.