Majority of Indonesians Unprepared for Retirement
Indonesia is on the brink of a significant demographic transition. According to 2025 data from the Central Bureau of Statistics (BPS), the elderly population in the country has reached 12% and is projected to surge to over 20% by 2045. However, behind these figures lies a worrying fact regarding the lack of readiness among the public to face old age.
These findings were revealed in a recent research study titled “Indonesia Towards an Ageing Population: How Prepared Are We?” launched by the DBS Foundation. The launch was attended by the Deputy for Coordination of Family Quality Improvement and Population of the Coordinating Ministry for Human Development and Culture (Kemenko PMK), Woro Srihastuti Sulistyaningrum; Artist and Founder of the Cinta Laura Foundation, Cinta Laura Kiehl; and the Head of Group Marketing & Communications of PT Bank DBS Indonesia, Mona Monika.
The research highlights Indonesia’s demographic transition as it enters the ageing society phase, where 10 percent of the population is already over the age of 60. Data shows that by 2025, the elderly population has reached 12 percent and is predicted to jump to more than 20 percent by 2045.
This change in population structure brings significant consequences for the dependency ratio. Declining fertility rates and increasing life expectancy are narrowing Indonesia’s demographic bonus window. This lack of preparedness is not merely a matter of statistics, but concerns the survival and welfare of multiple generations. The research shows that many individuals do not yet have mature planning regarding financial, health, or independence aspects in their old age. This condition has the potential to increase pressure on future productive generations, who will have to bear the burden of a non-independent elderly population.
Mona Monika emphasised that preparation for an ageing population must begin during the productive years. DBS Foundation is committed to supporting vulnerable communities to become more socially and financially resilient through access to education, health, and financial literacy.
Similarly, Cinta Laura Kiehl highlighted the importance of independence through education. “Independence in the future is built from the desire to continue learning. The Cinta Laura Foundation supports students in developing their capacity to be ready to build the future they desire,” said Laura.
From a policy perspective, Woro Srihastuti Sulistyaningrum explained that the government is implementing a life-course approach. This means attention is given to every phase of life, from early childhood and education to old age, in order to build a high-quality human resource foundation. The Deputy emphasised that the main challenge is not the number of elderly people, but how to build readiness from an early age, ensuring individuals can age healthily, productively, and prosperously without becoming a burden to others.
As a concrete step, Bank DBS Indonesia has introduced a Retirement Goal Calculator as part of its “Pensiun Gak Susah” (Retirement is Not Hard) campaign. This tool helps individuals project their financial needs for old age based on lifestyle, inflation, and target retirement age.
The research serves as a reminder for all stakeholders—including the government, the private sector, and individuals—to take immediate concrete steps in strengthening social and financial resilience for a more stable future. Prof. Sarah Harper from Oxford noted that an ageing population is a success of civilisation, and the 50-70 age group will be the key to the future economy.