Age 40 Not Too Late to Prepare Retirement Funds, Here's How

The age of 40 is considered an appropriate time to start preparing a retirement fund. At this age, a person still has around 17 to 20 years to build assets and investments before entering retirement. President Director of PT Bank Mandiri Taspen (Bank Mantap), Panji Irawan, said many people only start thinking about retirement funds as they near retirement age. In fact, the earlier preparations are made, the greater the opportunity for a better financial situation in old age. “We will soon launch the ‘Life Begins at 40’ programme. We see that age 40 is still a good time to start preparing for retirement,” Panji said during a media gathering in Ubud, Gianyar, Bali, on Friday. According to Panji, ideally a person starts investing from the moment they earn their first income. However, he understands that many people can only focus on preparing retirement funds after other needs, such as buying a house, getting married, and supporting a family, have been met. Therefore, age 40 is considered a realistic momentum to start devising a financial strategy for retirement. “If you start at age 40, you still have about 18 years until retirement. That time is still sufficient to prepare,” he said. Panji advised the public to start building assets that can generate passive income after retirement. One instrument considered relatively safe is Government Securities (SBN). Additionally, people can also choose mutual funds or other productive assets according to their respective risk profiles. “The simplest way, if you don’t have time to run a business, is to invest. One option is Government Securities because the risk is relatively low. Mutual funds can also be an option according to your needs,” he said. Besides preparing retirement funds, Panji reminded the public of the importance of having health protection. According to him, healthcare costs tend to increase with age, so people need to ensure their participation in health insurance programmes. “Specifically for health, the government already has BPJS Kesehatan, which is one of the most affordable protections. Beyond that, people also need to prepare investments to support their needs during retirement,” he said. Panji added that Bank Mantap also encourages prospective retirees to have additional sources of income beyond their monthly pension. This income can come from investments or businesses that have been prepared while still actively working. According to him, preparations made well in advance will help people navigate retirement with healthier finances while remaining productive. “We want retirees to live longer, happier, and more prosperous lives. Therefore, retirement preparation cannot be done when you are nearing retirement age, but must start while you are still productive,” Panji said.