Why Need a Pension Fund? – Basically, the purpose of having sufficient retirement funds is so that we are financially independent in old age. Imagine, what will happen if in retirement, we no longer have a fixed source of income that we usually receive every month. On the other hand, our children are married and of course focus on the cost of living for their families with different needs. In addition, there will be some risks that we can experience in old age. Want to know anything?
1. The Elderly is Vulnerable to Critical Illness, and the Cost of Treatment is Increasingly Expensive
Biologically, the elderly are susceptible to disease because their immune systems are getting weaker over time.
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But this is in contrast to the increase in medical costs in Indonesia which is quite high. Data from Mercer Marsh Benefits 2019 shows that the increase in medical costs in the country is 11% per year.
2. The Elderly Are Also Vulnerable To Be Abandoned
Neglected elderly can be defined as a person aged over 60 years who cannot meet their basic needs. There are many factors that cause this to happen, including economic factors or family factors. Even though the elderly are protected by the government, if you think about it, do we want to live like that? Doesn’t everyone yearn for a good quality of life when they get old?
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3. Life Needs Can Increase When Age Exceeds Life Expectancy
This risk will certainly be experienced by everyone because no one can ever know for sure when he will die. Data from BPS states that life expectancy in Indonesia in general is 71.5 years. If we are currently 35 years old, then we have approximately 36 more years to prepare and provide for the family we live in.
What if our age later exceeds the average life expectancy? This means that the need in old age will also increase. So, what if we die at a productive age? What about the fate of the loved ones we left behind? How do they meet the needs of everyday life after we leave?
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Seeing the risks that we have the potential to experience in old age, it can be concluded that we still need careful planning when we retire and the role of pension funds is very important here.