Jakarta, CNBC Indonesia – Having a healthy body and a long life might be your dream. But behind it all there will be a number of risks that you have to face.

The need for pension funds or the funds that we will use to finance our lives in unproductive times, will of course really depend on how long we live in this world.

Below is a table that shows the amount of a person’s annual expenditure in the next 25 years, if the calculation assumes inflation of 5% per year.

To find out the amount of your pension fund, you need to multiply the total annual expenses by the estimated time you will live in this world.

Let’s just say that if you intend to retire at the age of 55 years and determine an assumed life expectancy of 85 years, then your pension funds must be able to cover your living needs for the next 30 years.

If your estimated expenses in old age are IDR 600 million a year, then the retirement funds you need are:

IDR 600 million x 30 years = IDR 18 billion

Today’s lifestyle can be a reflection of old age

It could be said that your current lifestyle will greatly influence your old age.

The bigger the target pension fund you need, the bigger the money you have to set aside each month or year to collect pension funds.

One way you can minimize the swelling of your pension fund expenses is to rearrange your lifestyle. It is very likely that in old age, your children will have graduated and are working, your financial burden will certainly be lighter than before.

Downgrading your lifestyle might be the right choice.

[Gambas:Video CNBC]

(aak/aak)