From what age to prepare for retirement funds is often a question that arises in the heads of many young friends. “I’m still early in my career, why think about retirement?” Maybe that’s what you think.

But in fact, starting the preparation of pension funds from a young age is the best step to ensure a safer, more comfortable, and financially stress-free future. Let’s discuss why at what age to prepare for retirement, the answer is: as early as possible!

Reasons to set up a pension fund as early as possible

1. The younger you start, the lighter the burden

From what age should you prepare for retirement? The answer is, as early as possible after you have a steady income. When you start in your 20s, the burden of saving becomes much lighter.

You can set aside a small amount each month to invest and let time work through the compounding effect. Small investments today can grow big decades down the road without having to deposit a large amount every month. By starting young, small investments today have the potential to grow tens of times in the future.

If you delay, you will have to set aside more each month in the future and it will certainly feel much heavier. Hence, understanding at what age to set up a pension fund is the first step to creating a more relaxed and planned financial journey.

2. Prevents the Effects of Lifestyle Inflation

One of the reasons why it is important to know at what age to prepare for retirement is so that you can avoid the trap of lifestyle inflation. When salaries increase, expenses often increase as well. With a commitment to prepare a pension fund from the beginning, you will be more disciplined in managing the additional income.

Many people, once their salary increases, immediately upgrade their lifestyle: buy a new car, take a luxurious vacation, or shop for branded goods. In fact, salary increases should also be balanced with an increase in future savings, including retirement funds.

If from the beginning you have committed to setting aside part of your income for retirement, your lifestyle can still be well controlled. So, since you know at what age to prepare a pension fund, don’t delay the intention to start saving, huh!

3. Setting Up a Retirement Fund is Cheaper When Young

The question of at what age to set up a pension fund is also related to cost. The younger you start, the smaller the amount that needs to be set aside each month. Saving Rp500 thousand at the age of 22 is much easier than having to save Rp2 million a month at the age of 35.

Why is that? Because you lose years of time that could have been used to take advantage of the interest compounding effect. In addition, by starting early, you can choose long-term investment instruments that have the potential to provide higher returns.

So, don’t wait until later to answer the question How Old Should I Prepare for Pension Funds with real action from now on.

4. Providing Opportunities for Financial Freedom Faster

You might be asking yourself, at what age should you prepare for retirement if you want to be financially free sooner? The answer, of course, is as early as possible. With sufficient retirement funds, you can choose to retire early or pursue your dream job without heavy financial pressure.

By starting to build a pension fund from a young age, you can accumulate enough assets to stop working at the age of 45 or 50. This means you can choose to live more freely: pursue your passion, build your own business, travel the world, or spend more time with your family.

Without having to worry about financial matters, you have more choices to live your life as you wish.

Prepare for Retirement with Digital Gold Investment at Treasury

At Treasury, you can start investing in digital gold with a very small capital, even starting from just Rp5,000. Flexible, easy to monitor through the application, and can be withdrawn at any time when needed, it is perfect for those who are just learning to invest but want to seriously prepare for the future.

By consistently buying gold little by little in Treasury, your retirement savings will grow and be ready to use when the time comes. Remember, delaying will only make you have to work harder in the future. So, instead of wondering at what age to set up a retirement fund, let’s start taking small investment steps now with Treasury!