How can gen z and millennials start preparing for retirement early on? Here are tips from experts at Bank DBS Indonesia | Bahasa

Gen Z and millennials, currently navigating their most productive years, often focus heavily on immediate needs, ranging from pursuing their passions and building their income to enjoying their lifestyle. Amid these competing priorities, there is one important thing that should be considered starting now: managing funds to ensure a smooth transition into retirement (pensiun gak susah). Retirement planning is crucial given that Indonesia is gearing up for an ageing population over the next 20 years. This means young people need to start preparing for retirement as early as possible to remain financially independent in their later years.

Unfortunately, retirement planning is not yet a priority for Gen Z and millennials. A Bank DBS Indonesia study entitled “Ageing Society 2025” notes:

In Indonesia, around 100 million people risk not having retirement savings by 2038. One of the causes is the low savings rate, with the average Indonesian setting aside only about 3 percent of their income, far below the ideal minimum recommendation of 10 percent to achieve financial independence. Without adequate planning, many individuals risk financial vulnerability on the verge of retirement, from difficulties in meeting basic needs and healthcare costs to dependence on others.

To avoid living in regret in the future, let’s take a look at some tips from Bank DBS Indonesia to prepare for a financially secure and comfortable retirement!

1. Start Saving Now, Even with Small Amounts
Gen Z's greatest advantage is the long runway to retirement. With an investment horison spanning decades, even small amounts invested regularly have the potential to grow significantly thanks to the compounding effect, where returns continue to grow and generate additional gains over time. Conversely, delaying only makes the retirement fund target harder to reach as the window for asset growth becomes shorter.

Beyond that, starting early also increases flexibility in taking on risk and adjusting investment strategies as economic conditions change. On the long road to retirement, there will always be different market cycles, so investing consistently from an early age helps Gen Z capitalise on various opportunities while cultivating disciplined financial habits.

2. Think Holistically About Retirement Needs Beyond Just Looking at Basic Living Costs
Many people fall into the trap of preparing a retirement fund solely for basic necessities such as food, housing, and healthcare. Yet, a comfortable retirement is not just about survival, it is also about maintaining quality of life. Activities such as exercise, travelling, or staying connected with friends still require spending to keep daily life meaningful and enjoyable.

That’s why it is important to calculate retirement needs more realistically from the outset, including expenditure on the lifestyle and activities that support both physical and mental well-being. With more comprehensive planning, a retirement fund will not only be sufficient to cover basic needs but will also enable people to enjoy their later years more actively, independently, prosperously, and pleasurably.

To facilitate this process, you can try the Retirement Goal Calculator from Bank DBS Indonesia. The calculator is designed to help estimate how much fund you may need to retire more thoroughly, including the lifestyle components you wish to maintain, while also showing whether your current financial condition is sufficient to achieve those goals. In line with the spirit of 'Live more, Bank less', this calculator is intended to simplify what is often a complex financial planning process so you can focus more on enjoying life today without worrying about the future.

3. Set a Realistic Monthly Budget
For young people who are just starting their careers, limited income is often a challenge when managing finances. It is therefore important to create a realistic monthly budget and to stick to it with discipline.

One way of tackling the issue is using the 50-30-20 ratio method. With this method, 50 percent of income is allocated to basic needs such as food, rent, transportation, and routine bills. A further 30 percent can be used to satisfy personal wants such as hobbies, entertainment, or holidays. The remaining 20 percent should ideally be set aside for savings and investment, which is a first step toward building a retirement fund and achieving long-term financial goals.

By creating a budget early, Gen Z and millennials can more easily keep spending in check and ensure every rupiah spent is aligned with their priorities.

4. Developing an Investment Strategy by Life Stages
Investment needs to be optimised using strategies tailored to each individual’s condition and goals. Millennials focus their investment strategies on balancing growth with stability, allocating around 60–70 percent to equity-based instruments to pursue value growth, 20–30 percent to bonds to maintain stability, and 10–15 percent to alternative investments such as property, commodities, or gold.

Meanwhile, for younger people who are just starting to invest, low-risk instruments that provide regular cash flow, such as retail bonds and fixed-income mutual funds, can be a safer initial choice. Regardless of the chosen instruments, both millennials and Gen Z need to emphasise the importance of starting early and investing consistently through periodic contributions, regular portfolio monitoring, and strategy adjustments according to economic conditions so that long-term financial goals can be achieved sustainably.

5. Understand Economic Cycles to Keep Retirement Strategies on Track
Planning for retirement funds is not only about investing regularly but also about being responsive to economic cycles. Each phase of the economic cycle, from recovery to slowdown or recession, presents unique opportunities. By understanding economic cycles, you can make wiser decisions in choosing instruments that suit the prevailing conditions. For example, there are phases where more aggressive instruments can be optimised while in other phases a more defensive approach may be warranted to preserve portfolio value.

Therefore, investment strategies should not be static. The key is to regularly and consistently review retirement strategies. Review the portfolio, adjust the investment composition when necessary, and ensure everything remains aligned with retirement targets. Ultimately, the goal is not only to pursue high returns but to ensure that retirement funds remain secure and sufficient in due course.


Although it may seem daunting, retirement planning is not complicated. With proper planning, you can enjoy your later years without worrying about financial issues. Therefore, young people can start planning by using the Retirement Goal Calculator from Bank DBS Indonesia, which helps calculate all future retirement needs. Interested in giving it a shot? Calculate your retirement needs at dbs.com/pensiun-gak-susah/retirement-calculator.

Ageing is not only an issue for the elderly but also for the younger generations who need to start preparing for retirement early on. At the initial stage of a financial journey, the main focus is not only on the amount of money but on building healthy habits, from increasing income capacity, allocating funds in a disciplined manner, to gaining motivation when seeing financial assets grow.

“For those just starting to invest, diversified instruments such as mutual funds can be an easier initial step as they help manage risk while providing optimal return potential. As a trusted partner, Bank DBS Indonesia is here for all age groups to help prepare and grow long-term finances. Preparing for retirement is not merely about saving but about understanding strategies early on and implementing them with discipline and consistency,” said Head of Market Intelligence, Consumer Banking Group, PT Bank DBS Indonesia Boy Suhendry.

With careful planning and support from the right financial partner, Gen Z and millennials can start preparing for a secure, prosperous, and meaningful retirement from an early stage.

For more information about DBS Foundation’s initiatives related to the ageing society, please visit www.dbs.com/foundation/ageing.