How to Prepare Pension Fund

I am a 37-year-old father with one child aged 10 years, working non-permanent (freelance) in the field of construction services, with no fixed income as well. Wife a homemaker.

How appropriate steps to provide the funds our old days, also please input of a suitable sideline to increase income.

Current financial position I am investing in government retail bonds (ORI) of Rp190 million for the period of three years.

Related questions you, according to my calculations, at least you can still work up to 18 years before retiring. This is the period where you should try to optimally increase the amount of retirement savings later.
However, you will also experience a period where there will be spending large sums of money, such as children enter junior high school, high school and then college, not to mention the regular expenditures in the form of monthly fees and book money.

With all the limitations of information from you, I tried to make a retirement plan for you. Prior to this retirement age, I assume that you will be able to meet the needs of you without relying on revenue savings. I assume that after retirement you will pay for two people living alone, because your son should have been independent. I also assume that you and your wife will be live until the age of 75 years and did not want to leave a legacy for your son (wealth will be exhausted when you die).

I assume that you need for family life after retirement (age 55 years) of constant worth Rp 5 million per month (current value), increases with inflation, which I assume by 10 percent a year.

Based on the assumptions above, then you need the money around Rp4, 15 billion to be able to live a decent old at the time you for about 20 years.

This is the assumption that you can get a return on investment (deposit) amounting to 5 per cent a year net of the retirement fund you. This is only rough calculations, but should be fairly accurate.

Well, assuming you retire 18 years from now, and assuming an investment yield rate of 25 percent per annum in the long term (focused on investments Mutual Funds Stocks aggressive type), you should save around Rp1, 2 million a month until the time you retire to get the number of Rp4, 15 billion at the time of retirement (Rp3, 45 billion of this investment, plus Rp700 million developing the retail bond investments you currently at 9.5 percent interest rate).

Once again, count-hitunganan this depends on the set of assumptions. For example, if you live longer than 75 years, there is risk of property you would run out before you die, known as Longevity risk. Or, if the inflation rate above 10 percent while the yield remained accumulated wealth or down, then you have to spend more money during retirement is to be targeted.

For a side job ideas, I can not recommend a proper job because I did not not know exactly how much free time you have each week, interest, and the network you have. However, I am sure you will find these opportunities and adapt to the conditions you. To remember is, the amount of investment deposit Rp1, 2 million above the minimum target of as much as you may have to be added to margin of safety and should be reviewed at least every two years.