Abstract
Many Indonesian people do not have individual retirement fund. They think that their expenses in retirement years can be paid by their children. Although it is a good opportunity for younger people to look after their parents, it can be a burdensome to some of the people who do not have stable income for themselves. It is unfortunate that not all Indonesian people are aware of the individual retirement fund. Furthermore, even if they knew about individual retirement fund, they would not give the contribution to make individual retirement fund. Moreover, there is limitation on information on the website and local book to guide Indonesian people to have and calculate his/her individual retirement fund. The purpose of this research is to help Indonesian people to aware about total individual retirement fund by calculating their individual retirement fund. In order to calculate individual retirement fund, they must know the expenses ratio, inflation rate, net interest rate, productive years, and retirement years. These five variables will help them to give the formula to calculate the individual retirement fund. Due to limitation of time and data, this thesis will only give more emphasis in expenses ratio, because it has significant level of determining total individual retirement fund that will differ from one to another person. The result of this thesis explains the relationship between each variable toward the individual retirement fund by doing sensitivity analysis. Furthermore, this thesis guides Indonesian people step-by-step to calculate individual retirement fund by using spreadsheet, such as Microsoft Excel.
Highlights
Majority of Indonesian do not think about individual retirement fund
It is necessary for every one to have individual retirement fund, so that his/her retirement life can be enjoyed without burdening his/her children or other member families
Based from the calculation and research result about sensitivity analysis, the individual retirement fund can be calculated by every one
Summary
Majority of Indonesian do not think about individual retirement fund. They think that their retirement income and expenses are covered by their children or company. Taspen (Tabungan dan Asuransi Pegawai Negri Sipil) These two organizations must manage the pension and retirement fund of their members. Research found that these two organizations did not give good performance to manage the pension fund, due to poor investment regulations, lack of Government coordination, and corporate governance (Wiener M., Alijoyo A., and Van der Auwera M., 2007). Based on this poor performance, the investment result will disappoint the investors
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