Bank DBS Indonesia introduces Face Your Future, an innovation to help customers prepare retirement fund | Bahasa
The “Spotlight On Retirement Indonesia” report published by the Society of Actuaries and LIMRA Secure Retirement Institute (2018) predicted that Indonesia's population will grow by 25 percent between 2015 and 2050. In the same period, the age 60+ population will grow by 195 percent, significantly exceeding overall population growth. The proportion of the elderly population is projected to treble in 35 years, from 21 million in 2015 to 62 million in 2050. With its large population, Indonesia needs to be well prepared to meet the needs of the elderly population in the future. Otherwise, it will create challenges such as a shrinking workforce that could slow economic growth and put enormous pressure on the pension system in the future.
Face Your Future enables customers to overcome these challenges and prepare themselves better early on through sophisticated technologies that can provide information on the best age to retire so that they can make better plans for the future.
"Planning for the future and retirement should be done as early as possible, even more so considering that uncertainties may arise, such as the case of the current pandemic. As life expectancy increases and lifestyle needs to change, it is important to plan ahead for a more secure future. Through Face Your Future, we hope to provide information and better descriptions for customers, especially the younger generations, about the reality of retirement so that they can plan their future strategically and confidently," said Consumer Banking Director, PT Bank DBS Indonesia, Rudy Tandjung.
Without careful retirement planning, people may have to work longer. Therefore, it is important to start making retirement plans early on and carefully, otherwise people may have to work beyond the typical retirement age. Bank DBS Indonesia seeks to help people better understand their pension needs and plan their golden years using Face Your Future.
Face Your Future’s personalised approach includes customer algorithms to estimate the amount of funds customers need to prepare to enjoy life in old age based on customer preferences for a lifestyle in retirement. Based on customer preferences such as the age of retirement and the visualisation of life in the golden years, Face Your Future will calculate customers’ monthly need and how to meet it. To prepare for retirement, customers can access Face Your Future from this link.
A survey in the report on 765 respondents from three age groups, namely young workers (30-45 years old), pre-retirees (46-60 years old), and retirees (above 60 years old), shows that 64 percent of the respondents perceive that they are responsible for financing life in retirement. This is a high figure, especially in Java, where nearly 7 out of 10 respondents are aware that they are responsible for their finances after retirement.
As many as 47 percent of respondents regretted putting off savings for retirement or not having started at all. This indicates that they don’t have enough savings for retirement. On the other hand, the Pension Sustainability Index in 2016 shows that the retirement system in Indonesia ranked 50th out of 54 markets. Historically, Indonesia has not had a comprehensive pension system that covers the entire population.
The financial industry should understand consumers’ perspective of the length of time required to save money for retirement. The time spent on retirement planning varies slightly between segments in Indonesia. The same survey results also show that most respondents generally start saving for retirement around the age of 38 and spend around 23 years preparing for their retirement savings. Indonesian pre-retirees start preparing for retirement later, at the age of 40, and saving at about age 20. However, it is the retired segment that spent the maximum amount of time preparing for retirement. They spent 26 years saving for their retirement and finally they retired at about age 65. Therefore, Face Your Future is expected to be the right solution for people in preparing for life in retirement.
DBS is a leading financial services group in Asia with a presence in 18 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “World’s Best Bank” by Euromoney, “Global Bank of the Year” by The Banker and “Best Bank in the World” by Global Finance. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney. In addition, DBS has been accorded the “Safest Bank in Asia” award by Global Finance for 12 consecutive years from 2009 to 2020.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with customers, and positively impacting communities through supporting social enterprises, as it banks the Asian way. It has also established a SG50 million foundation to strengthen its corporate social responsibility efforts in Singapore and across Asia.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. The bank acknowledges the passion, commitment and can-do spirit in all of our 29,000 staff, representing over 40 nationalities. For more information, please visit www.dbs.com.