Perceived Financial Adequacy in Old Age: A Case Study in Indonesia

Aris Ananta, Evi Nurvidya Arifin, Ahmad Irsan A. Moeis

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)


Studies on perceived financial adequacy (PFA) among older persons are mostly about developed countries. However, the ageing population is undergoing an even faster rate in developing countries. This paper fills this gap, by examining economic-social factors associated with PFA in Indonesia, a developing country. The analysis uses statistics derived from three nationwide surveys conducted in 2015, enriched with insights on retirement income and retirement age derived from two online surveys, conducted in 2016/2017 and 2018. The result shows consistency in the pattern of objective income and PFA. This paper also finds that intensity of working and flexibility in working are positively associated with PFA. Better health and better living environment are positively associated with PFA. Finally, social assistance is negatively related to PFA. It reveals that older persons may not have been able to maintain the standard of living they had before retirement. Workers (future retirees) may want much higher retirement income and work longer as working is still the only reliable source of financial support in old age. It therefore recommends that the retirement age is raised, health is improved, decent living environment is enhanced, and the government continues with social assistance programmes.

Original languageEnglish
Pages (from-to)199-216
Number of pages18
JournalMalaysian Journal of Economic Studies
Issue number2
Publication statusPublished - Dec 2021


  • Ageing
  • Employment
  • Financial adequacy
  • Health
  • Retirement age
  • Retirement income


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