Indonesia’s 60:40 Approach Reframes Retirement and Inheritance Planning

Swan.my.id - Jakarta, Indonesian families are increasingly viewing retirement and inheritance planning as a balance between personal financial independence and support for the next generation. The approach reflects growing awareness that parents need sufficient resources to live with dignity after leaving the workforce.

The Asia Care Survey 2026, conducted by Manulife with 9,000 respondents across Asia, including Indonesia, found that Indonesian respondents planned to allocate an average of 60% of their assets to prepare for an independent and dignified retirement. The remaining 40% was intended to be passed on to family members.

The findings were presented as a shift in perspective rather than a reduction in parental affection. By preparing for retirement independently, parents can help prevent their children from carrying the financial responsibility of supporting them later in life.

Retirement and Inheritance Planning Seeks a Practical Balance

The 60:40 approach covers several retirement priorities, including healthcare, personal development and capital that can be developed into adequate retirement resources. Meanwhile, the inheritance portion can support children as they build their own financial future.

Eveline Haumahu, Chief Marketing Officer of PT Manulife Aset Manajemen Indonesia, said the most valuable inheritance is not always the largest asset. In her view, parents can also leave a meaningful legacy by allowing their children to build independent lives without making them responsible for family retirement needs.

This consideration has become more relevant as younger generations face tighter job competition, more dynamic career paths and rising living costs. Many young people also need more time to achieve financial stability than previous generations.

Longer Life Expectancy Requires Early Preparation

Data from Statistics Indonesia, or BPS, puts Indonesia’s life expectancy at around 74 years. With the general retirement age often around 55, retirees may face nearly two decades without active employment income.

That period makes retirement a long financial phase rather than a short transition. Families therefore need to estimate future living costs and prepare resources as early as possible, especially because healthcare and daily expenses can continue throughout retirement.

Haumahu emphasized that building a financially independent retirement requires strong planning. She also noted that covering living costs for approximately 20 years can be expensive, making early preparation important.

Investment Options Can Support Retirement Goals

Several financial products can help people build retirement resources, including pension products such as Dana Pensiun Lembaga Keuangan, mutual funds and other capital market instruments. Access to technology, financial education and low minimum investment requirements can make it easier for individuals to begin preparing for retirement.

However, each family has different financial conditions and priorities. The 60:40 allocation should therefore be viewed as a perspective for discussion, not a universal formula. Before deciding how much to pass on, families should first ensure that their retirement needs have been addressed.

Homes, investments and other assets can remain valuable inheritances. Nevertheless, a complete legacy also includes the ability of parents to live independently and with dignity while giving their children greater freedom to pursue their own futures.

About PT Manulife Aset Manajemen Indonesia

PT Manulife Aset Manajemen Indonesia has operated in Indonesia since 1996 and is part of Manulife Wealth and Asset Management. The company provides investment management, mutual fund and investment advisory services.

As of June 2026, the company reported total assets under management of Rp125 trillion. PT Manulife Aset Manajemen Indonesia is licensed and supervised by the Financial Services Authority, or OJK.

Investment through mutual funds involves risk. Prospective investors should read and understand the prospectus before investing. Past performance does not reflect future performance.

Frequently Asked Questions

What does the 60:40 approach mean?

It refers to the average plan among Indonesian survey respondents to allocate 60% of assets for independent retirement preparation and 40% for inheritance.

Is the 60:40 allocation suitable for every family?

No. Each family has different needs, assets and priorities. The ratio is a perspective rather than a mandatory financial formula.

Why should retirement preparation come before inheritance planning?

Independent retirement preparation can help parents meet their own needs and reduce the possibility that children must provide long-term financial support.