Most Indonesian Elderly Lack Retirement Security

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Adi Ahdiat 10/09/2024 12:21 WIB

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According to BPS data, in 2023 only 5% of elderly households met their needs through pension benefits.

Percentage of Indonesian Elderly Households by Main Source of Financing (2023)

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Percentage of Indonesian Elderly Households by Main Source of Financing (2023)

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According to data from the Central Statistics Agency (BPS), in 2023, 11.75% of Indonesia's population was elderly (lansia) or aged 60 and above.

Based on Indonesia's mid-2023 population of 278.7 million, the elderly population during that period is estimated to have reached 32.7 million.

In 2023, the majority, or 82.6%, of elderly households met their needs from the income of their children, family, or working household members.

Furthermore, 11.98% met their needs through remittances of money/goods from other parties.

Meanwhile, only 5.02% had their needs met through pension benefits.

Elderly households meeting their needs from investments, deposits, royalties, stocks, bank interest, etc., were even fewer, at only 0.4%.

"Not many elderly people adequately prepare their finances for their old age, so it is undeniable that, within a family structure, elderly parents economically depend on their children or younger family members," wrote the BPS in its 2023 Elderly Population Statistics report.

"Therefore, it is important to create a safety net in the form of social assistance and social protection for the elderly to ensure their security in old age," it continued.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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