Government Is Right About JHT, BPS Data: Nearly 15 Million People 60 Years Old And Over Still Work And Only 55 Percent Dream Of Retirement

BPJS Employment, the new rules regarding the disbursement of Old Age Security (JHT) are ideally correct. (Photo: Doc. Ministry of Manpower)

JAKARTA - The disbursement of the old-age security fund (JHT) is now not as fast as before. The government through the Ministry of Manpower (Kemenaker) has issued Permenaker Number 2 of 2022 concerning Procedures and Requirements for Payment of Old Age Security Benefits (JHT).

In Article 3, it is written that JHT benefits will be given to BPJS Employment (BP Jamsostek) participants aged 56 years. "The benefits of JHT for Participants who reach retirement age as referred to in Article 2 letter a are given to participants when they reach the age of 56 years." That is what is written in the latest Permenaker.

Many people imagine, retirement could be the golden age of the fruit of a career journey that was pursued from a young age. However, retirement is not always enjoyed and does not need to be luxurious.

Job seeker market. (Photo: Antara/Aloysius Jarot Nugroho)

Spending retirement in an area with good weather, good health care, and low cost of living are the most basic luxuries for retirees who are stepping on the elderly.

Retirement funds need to be prepared, it's true. The amount of savings you have becomes an incentive for the life you dream of retirement. However, the ideal picture may be difficult for everyone to reach. Especially for those whose savings are not large or whose funds are mediocre.

HSBC Survey Results

Hong Kong and Shanghai Bank Corporation (HSBC) released a report titled Future of Retirement Healthy New Beginnings. This report is the result of a survey of more than 18,000 people in 17 countries around the world, including Indonesia. This research was conducted online by Ipsos MORI. HSBC has conducted research on the future of retirement since 2019 involving more than 159,000 respondents worldwide. The latest survey results reveal that 65% of people aged 45 years or older dream of being able to enjoy retirement in the next five years. However, as many as 37% of the group admitted that they could not realize their dreams, mainly because they still had to struggle financially. The biggest desire for retirement occurred in Argentina. In that country, 78% of workers aged 45 years and over want to retire. While in China as much as 75%, France as much as 77%, and the UK as much as 75%. In Indonesia, only 58% of respondents dream of retiring.

As many as 81% of workers over the age of 45 who have a spouse who have retired want to retire immediately within the next five years. As many as 39% of them want to retire so they can join their partner in retirement.

Illustration of a pensioner taking his pension at the Post Office. (Photo: Antara)

The Annual Global Retirement Index 2022 launched by International Living in early January reveals which countries in Europe and Central America are the best places to retire. The criteria that are required to be the best place are not grandiose and far from sparkling.

This means that living in these places tends to make a retiree live a happier life.

In summary, the criteria include a place with good weather, good health services for any complaints felt by the elderly, availability of entertainment, and low cost of living.

Here are 10 countries that are considered the best for spending their old age, quoted from the NZ Herald page, Monday, February 21, 2022.

1.Panama

The best place according to the index is Panama. There is a choice of residential locations in cities, beaches, mountains, or highlands. Another advantage in this tropical country is a known friendly population, the best standard of medical facilities, and a low crime rate.

Costa Rica

Located between Panama and Nicaragua, this Central American country has a high literacy rate. The cost of living is low, the landscape is beautiful, the democracy is stable, and the health care system is one of the best in Latin America.

Mexico

Mexico is in third place as the best retirement place. Affordable healthcare makes it a medical tourism destination. The uncomplicated visa and residency process also makes moving to Mexico easier compared to other countries.

Portugal

Portugal's quaint towns and pristine beaches have captivated travelers of all ages, including those in their old age. English is widely spoken in several parts of Portugal, which is a plus for the location to spend the old age of the world's citizens.

Colombia

Colombia offers a variety of stunning landscapes, ranging from rainforests, islands and mountains. In addition to access to high-quality health care facilities, property costs in Colombia are relatively low and the visa application process is uncomplicated.

Ecuador

Warm climate, rich culture, and affordable cost of living; all can be had in Ecuador. The combination is considered suitable for people who want to enjoy old age. There are options for living in a modern city or a laid-back coastal community.

French

Imagine living in a peaceful village in France. Retirees can try a variety of special dishes and stop by historical places. Another plus is the cost of affordable housing in certain areas, as well as a qualified health system.

Malta

Malta is more suited to the sun-loving, with a variety of interesting locations such as fishing villages on the seacoast, small towns or rocky mountains. Even so, this island nation in Southern Europe has a world-class health system and a variety of special foods.

Spanish

The combination of easily accessible natural destinations, high-quality healthcare and a healthy Mediterranean diet exists in Spain. No wonder the country is considered a great place to retire.

Uruguay

If outdoor adventure, vibrant culture and delicious cuisine are your priorities, Uruguay is the perfect place. Health care costs in this country are also very affordable, apart from the ideal climate like warm summers and cool winters

The top five best places in the world for International Living's retirement are Panama, Costa Rica, Mexico, Portugal and Ecuador, respectively. In the next five ranks, there are Colombia, France, Malta, Spain, and Uruguay. There are ten criteria for evaluating the selection of these countries, including housing, benefits, visas or residence permits, entertainment, and development needed. In addition, it is also related to weather, health services, uncomplicated government, opportunities, and the cost of living.

For the Asian region, Bali's position with a score of 69 in 16th place is still lower than Thailand which is in 11th place (score 72.9), Cambodia is in 14th place (score of 72.3), and Malaysia is in 15th place. (score 72). Thailand excels in the criteria of cost of living and ease of obtaining a visa/residence permit.

Cambodia, along with Indonesia, excels in terms of cost of living and entertainment. While Malaysia excels in the criteria of cost of living and development. Vietnam is in 18th place with a score of 68.3.

Pension Cost

How to live daily life in retirement is still a major concern for retirees, especially related to meeting their daily needs. That is why, being in an area with a low cost of living is one of the main considerations.

Not having sufficient funds in old age is a major universal problem. The World Economic Forum (WEF) once said that 51 percent of workers were worried that they would not make enough money to live in retirement on October 22, 2019.

This is normal because in retirement many people want to do fun activities, apart from work. These activities include traveling to various tourist destinations (traveling), spending more time with family and friends, working on a new hobby, or even just volunteering for certain activities.

Adequacy of funds is calculated to do these things. An AAG study published by the WEF on February 3, 2022 regarding the cost of retirement says that one in four respondents (25 percent) in the United States believe they need at least $1 million to live a comfortable and enjoyable retirement life.

If converted into rupiah, the value is not less than Rp. 14 billion. Only seven percent of respondents stated that they had enough money of no more than US$ 25,000 or the equivalent of Rp. 350 million for a proper retirement period.

Keep Working

Contrary to the flow of people who want to retire from a stressful job and have fun, there are others who want to keep working even after they retire. It is stated that 59 percent of workers in Italy, the US and Australia hope to continue working even after retirement (WEF, October 22, 2019).

While in the Netherlands, only 32 percent expect the same thing. This lower figure is likely due to the already good pension support system in the Windmill Country, even one of the best in the world.

In Indonesia, data from the Central Statistics Agency shows that nearly 15 million people aged 60 years and over are still working, both in the formal and non-formal sectors. This number is 11.4 percent of the total working population based on the National Labor Force Survey in August 2021.

This number increased compared to conditions in 2019. In the year before the pandemic, the number of people aged 60 years and over who were still working was recorded as 12.9 million people or 10.2 percent of the total working population. In 2020, the number will be 14.7 million people (11.5 percent).

The economic downturn due to the COVID-19 pandemic has apparently forced the elderly population to continue working to fulfill their daily needs, the costs of which tend to rise. Although there is a small possibility that they will continue to work because of the self-actualization factor.

Restore Function

The new government policy returns the JHT program to its initial function as a savings for old age which can only be disbursed at the age of 56 (retirement age), or when the worker dies (for heirs), permanent total disability, or when changing citizenship.

This policy is opposed by many workers/workers because it eliminates the opportunity for workers who are laid off or resign from the company, who based on the previous regulation (Permenaker Number 19/2015), can get funds that may be large enough to organize their economy going forward. , preparing for old age/retirement.

Indonesian Minister of Manpower, Ida Fauziyah. (Photo: Doc. Ministry of Manpower)

Regardless of the debate about the new policy, the government actually presents a support system that guarantees a better life in old age or in retirement based on the ten International Living criteria mentioned above.

The role of the government is as important as the efforts of each individual to construct the desired retirement period. Thus, there is no worry to face an uncertain retirement period.

In the latest development, President Jokowi asked the Minister of Manpower Ida Fauziyah to revise the Minister of Manpower Regulation Number 2 of 2022. It is not clear what kind of revision will be made to the new rules regarding JHT.