BRI Finance Boss Explains Wealth Management Strategy For Old Age

Financial planning (Photo: Unsplash)

JAKARTA - President Director of PT BRI Multifinance Indonesia (BRI Finance) Wahyudi Darmawan revealed several wealth management strategies to prepare old age, including portfolio diversification, risk management, and sustainable investment.

"We must be careful and understand the risks that exist. Diversification of portfolios, risk management, and sustainable investment is the key to achieving long-term financial stability," Wahyudi said, quoting Antara.

He said, there are three main pillars in wealth management, including protection and sustainability of wealth, growth and accumulation of wealth, as well as distribution and transition of wealth.

In the first pillar, Wahyudi reminded that as many as 49 percent of people aged 60 years depend on others and only 1 percent are rich. Meanwhile, the average life expectancy in Indonesia in 2023 is 70 years for men and 74 years for women, according to BPS.

Then in the second pillar, Wahyudi linked it to the perception of investment risk among the younger generation. As many as 62.7 percent of the younger generation view cryptocurrency as an investment with high risk and 52.8 percent consider shares to provide big profits.

Furthermore, in the third pillar, he highlighted the fact behind retiring in Indonesia where only 5.06 percent of the workforce has pension funds. In other words, four out of five people postponed retirement because they did not have enough funds.

Given these problems, Wahyudi emphasized the importance of financial management for old age through individual savings, personal financial plans, as well as life and health insurance.

Therefore, he added, starting investment from an early age is important to do. The first step towards financial stability is understanding and utilizing various existing investment instruments.

"If you want to build wealth, you have to invest," said Wahyudi.

The Indonesian Embassy in Finance has a commitment to increase financial literacy among the younger generation of Indonesia. The Company believes that the community can achieve better financial stability and contribute to economic growth armed with good knowledge of wealth management.

This commitment was realized by BRI Finance by presenting Wahyudi as the mainnote speaker at the "MBA Talks 8.0 Executive Series" on Friday (7/6).

The talk show, which was held at the Faculty of Economics and Business (FEB) Universitas Gadjah Mada (UGM), provides an opportunity for students to learn directly from experienced experts about how to manage finances wisely and prepare themselves for future economic challenges.

With a better understanding of wealth management, the company notes, it is hoped that students can implement effective strategies in their personal and professional lives.