Retirement Prosperity Why It Matters

Retirement is not just about age; it is highly relatable to maintaining your chosen lifestyle and how you wish to continue living.

The concept of retirement in developing countries like Indonesia has undergone an evolutionary turn in the last couple of years. Retirement opens a whole new chapter for many individuals, when they pursue the ‘work they love to do’ and convert their hobbies to professions, or even start to contribute more to the welfare of their offspring.

A recent survey published by HSBC, entitled “Future of Retirement”, reflected this in one way by indicating that 51% of Indonesia’s working age demographic is concerned about whether their savings are enough to sustain a comfortable life in their future retirement lives. Furthermore, the survey also finds that, 77% of working age people prefer to phase into “semi-retired” period — a period when an individual starts to  focus on retirement — 44% of them would like to continue with their current work, but with fewer hours, while another 44% expressed a wish to do a different kind of work and with fewer hours. The last 11% wants to work the same hours, but in a different job. The survey involved 1,000 participants aged 25 and up, both still working and retired.

It is clear that the majority of our society today feels the need to plan their retirement well. Let’s have a look at some relevant factors as to why this is so.

Unforeseen Medical Expenses
Ripe age typically brings medical problems and increased healthcare expenses. Without your own nest egg, living out your golden years in comfort while also covering your medical expenses may turn out to be a burden too large to bear – especially if your health (or that of your loved ones) starts to deteriorate.

Estate Planning
In light of a more positive angle, let’s consider your family and loved ones for a moment. Part of your retirement savings may help contribute to your children’s or grandchildren’s lives, be it through financing their education, passing on a portion of your nest egg, or simply keeping sentimental assets, such as land or real estate, within the family. Without a well-planned retirement nest egg, you may be forced to liquidate your assets in order to cover your expenses during your retirement years. This could prevent you from leaving a financial legacy for your loved ones, or worse, cause you to become a financial burden on your family in your old age.

Adaptable to Changes
We all know too well how life tends to throw us a curve ball without warning every now and then. Regardless of the challenges faced throughout your life, a secure nest egg will do wonders for helping you cope. Financial hiccups can be smoothed out over the long term, provided that they don’t derail your financial plan in the short term, and there is much to be said for the peace of mind that a sizable nest egg can provide.

Lack of social security system
While recent developments have been on the positive side, there is admittedly still no social security system in our country. Hence, meticulous planning is crucial to help make a regular income, or meet any post-retirement contingency.

Desire to remain a contributor
Most can’t help, but wanting to contribute to the family by providing and supporting the kids or grandkids at milestones of their lives remains even after retirement is inevitable. Starting an independent venture is also an emerging trend. These can be fulfilled only when one is financially self-reliant.

Rest and relaxation
Ultimately, retirement should be about enjoying the fruits of all the hard work you’ve earned in your younger years. It is your reward after decades of fulfilling your obligations. Above all, you know you deserve at least this much.

Keeping these key points in mind, it is advisable to seek guidance from a solid financial planner to secure a prosperous and financially healthy future.

“Therefore, it is important for us to start planning for retirement as early as possible. Compared to other countries, Indonesia has the lowest percentage of respondents, 12%, who believe that 30 is the maximum age to start planning for retirement,” the Senior Vice President and Head of Wealth Management of HSBC Indonesia, Steven Suryana, explained.

Steven also said that HSBC is always committed to assist in the retirement planning of its customers, as part of its concern for every individual’s personal economy. Capable of strategic financial planning, HSBC is able to come up with the best strategy according to every customer’s risk profile and long-term goal, supported by series of fine solutions in terms of protection and investment aspects. Furthermore, HSBC equips customers with a digital application platform, namely the Wealth Dashboard. This application is accessible through any mobile device, as well as a PC, and allows customers to manage their portfolios through one screen without being restrained by time or location. In addition, this application enables customers to constantly monitor market updates and optimize their mutual funds investment placement.

“We understand and value that everyone has a unique vision for retirement. To start planning your retirement or to see how your current plans could benefit from HSBC’s insights into the Future of Retirement, schedule a complimentary review with HSBC’s Relationship Manager or walk into any HSBC Branch in your city.” Steven added.