People face various types of financial risks throughout their lives, including personal, asset-related, economic, and legal liability risks.
Even longevity can pose a financial risk. If not managed properly, living a long life may lead to new financial challenges. This risk impacts not only individuals who live longer but also their families, such as children who may end up bearing the financial responsibilities of their parents. This situation often leads to the “sandwich generation,” where individuals carry the financial burden for both the older and younger generations.
“This ‘long life’ risk is a unique challenge in financial planning,” said Arinda Mentari Putri, an independent financial planner and digital financial literacy researcher. “Therefore, it’s essential to prepare carefully, especially through proper retirement planning.”
Arinda highlighted the importance of retirement planning at the guest lecture for the Master of Science in Management and Doctor of Science in Management programs at SBM ITB, on Monday (10/21). She is an alumna of the MSM & DSM SBM ITB fast-track program.
According to Arinda, prioritization is crucial in financial planning. Alongside retirement planning, having an insurance policy is another important step.
Arinda shared tips for choosing a suitable insurance company, recommending that people consider factors such as the company’s capital structure (financial statements), profit records (at least three consecutive years), parent business group (if applicable), branch office network, customer base, claims process, and premium rates.
“Extremely low premiums don’t necessarily ensure quality service,” Arinda advised. “Choose an insurance provider with a solid reputation and products that suit your needs.”
She encouraged students to actively calculate their insurance requirements based on their financial situations, hoping this will help them make wiser financial decisions.
