Top 3 Retirement Concerns and What to Do About Them

Most people no longer work when they retire, except for those who have plans to start their own business after retirement. No longer work means no steady income that you can rely on every month.

Various retirement concerns may emerge. But, you don't need to worry. In this article, Jago will discuss the top 3 retirement concerns and what to do about them.

Top 3 Retirement Concerns and What to Do About Them

1. Not having enough retirement savings

There are many reasons that make people worry about whether they have enough retirement savings. For example, if an emergency occurs and the savings must be used to cover it. Or, if it turns out that they live longer than expected. The retirement savings are only enough to cover the retirees until they reach 75 years old, when in fact they live to 90 years.

So, what's the solution? If you've been diligently saving for retirement, you might want to consider rebudgeting. You can start setting aside more money for retirement. Analyze your expenses first. Who knows, there may be non-priority expenses that can be reduced or minimized.

To make it easier and more practical to monitor and analyze expenses, you can use the Jago application to help you. In the Jago application, there is the Spend Analysis feature. Each expense will be grouped into its own category and you can see where you have been spending too much money.

You can also consider setting aside money to save as an emergency fund. This emergency fund will be very useful for any time you experience unexpected events that require quite a lot of money, without having to “disturb” the funds used for daily needs.

2. Soaring health care costs

In general, diseases begin to appear when we enter old age. Treating a disease may require a lot of money.

As we all know, health care costs will be more expensive over time. And, most people worry that their retirement savings will not be enough if they get sick.

As said in point 1, to cover emergency events, such as a disease, you can consistently save for an emergency fund from a young age. In addition, you can also consider the option of buying health insurances.

3. There are still outstanding debts

Having debt at any age contributes to an uneasy life. However, debt that has not been paid off when you are already retired is a big concern because there is no income anymore. Then, how to pay off debt?

So that you can live your retirement with peace of mind and free from debts, you can start paying off debts while you are still working and have an income.

You can list all debts and make sure nothing is missed. Then, you can use the Plan Ahead and automatic transfer features in the Jago application so you don't forget to pay your debts.

Start Building Your Retirement Savings Early to Eliminate Worries as You Approach Retirement Age

Preparing for retirement early is a smart move. Bank Jago offers flexible and easy-to-manage solutions for this important goal.

Why choose Bank Jago for retirement savings?

Bank Jago provides a variety of features that simplify financial management, including long-term objectives like retirement. You can create multiple Pockets for different purposes, which is perfect for separating your retirement funds from daily expenses.

Savings and investment options for retirement with Bank Jago

You can leverage the following features to build your retirement fund:

• The Jago Locked Pocket as retirement savings

This is an excellent starting point for your savings journey. You can lock funds in these Pockets to cultivate savings discipline and prevent you from being tempted to spend the money. The Locked Pocket also offers a higher interest rate compared to regular Savings Pockets. This is ideal for gradually accumulating funds.

• The Jago Term Deposit as retirement savings

Once the funds in your Locked Pocket have accumulated to a significant amount, you can transfer them to a Jago Term Deposit. These deposits offer fixed interest rates that are generally higher and are suitable for funds you want to set aside for a longer period (e.g., 12 months). You can choose to continuously extend the deposit along with its interest until you reach retirement age. Term Deposits provide stability and more predictable growth for a substantial portion of your retirement funds.

Strategy for Managing Retirement Savings at Bank Jago

Effective management is key to ensuring your retirement funds are sufficient. Here are the steps:

1. Determine your retirement target: Calculate how much money you'll need when you retire. Consider your desired lifestyle, estimated inflation, and projected life expectancy. This will be your primary benchmark. Make sure to also factor in the three important points about worries discussed earlier in the article when calculating your target. You can read the formula for calculating retirement funds in this article.

2. Start with the Locked Pockets for initial accumulation:

   • Create a dedicated retirement Locked Pocket. Give it a clear name, like "Retirement Fund."

   • Set an initial target amount you want to accumulate in this Pocket (e.g., Rp5 million, IDR 10 million, etc.).

   • Utilize Bank Jago's automatic savings feature to schedule regular monthly transfers to your Retirement Pocket. Begin with a realistic and consistent amount.

3. Transfer to a Jago Term Deposit after reaching your target:

   • Once the funds in your Locked Pocket reach your initial specified target, cash out those funds and immediately transfer them to a Jago Term Deposit.

   • Choose a Term Deposit term that aligns with your plan to get optimal interest.

   • After the Time Deposit matures, you can choose to extend it or open a new deposit with additional funds from your next Locked Pocket accumulation.

4. Repeat the process periodically:

   • Continue saving in Locked Pockets to regularly accumulate additional funds.

   • When the funds in your Locked Pocket have accumulated to a significant amount again, transfer them to a new Jago Term Deposit. This is an effective way to maximize the interest earned on your savings.

5. Review and adjust:

   • Periodically (e.g., every six months or once a year), review your retirement target and savings progress.

   • Do you need to increase your monthly contributions?

   • Is your retirement target still realistic given changes in economic conditions or personal circumstances?

With this strategy, you can leverage the flexibility of the Locked Pockets for routine fund collection and the stability and higher interest rates of the Jago Term Deposits for the growth of your retirement funds.