Moderated by Citra Agnesia, the webinar delved deep into the sandwich generation issue in Indonesia, inviting Ayu Meidyawati, head of corporate sales at Sinarmas MSIG Life, and Nucha Bachri, CEO and Founder of educational parenting platform parentalk.id, as panelists.

The discussion also explored how pension fund products from financial institutions (DPLK) can be used for financial planning, as well as the importance of preparing for old age in order to break the chain of the sandwich generation.

The overarching theme of the webinar, the sandwich generation, describes the younger generation who are required to financially support their parents as well as themselves and their own children due to circumstances out of their control, ultimately reducing their own finances.

During the panel discussion, both speakers commented how this issue has been around for generations in Indonesia, but only receiving the limelight as people are becoming more aware and are taking steps to mitigate the situation.

“I am part of the sandwich generation myself, as both my parents are already retired and I have two kids of my own. I think awareness of this topic has only started with my generation. In my opinion, the term itself is still quite fresh in Indonesia, and not many people even recognize that they are part of it, when actually numerous individuals in the country experience the phenomena,” Nucha stated.

Ayu concurred with her sentiment, noting that the topic is currently happening in Indonesia.

“I think that we can break the chain of the sandwich generation or at least mitigate it now in the digital age. Now people can easily learn about financial products and increase their financial literacy through educational social media platforms. Resources are now so much more accessible,” she said.

The panelists then discussed how individuals could start planning and prioritizing their finances based on their personal needs. Nucha explained that with parentalk.id she created content, which lists down what young people need to do before they settle down with their partner.

“Always self-reflect and assess what you need, both mentally and financially. Especially in Indonesia, where the culture of joining two families into one is so strong, responsibility often extends to the family members of the people in the relationship, too. You need to make a family plan that communicates with your partner what you both need, which covers both the mental and financial aspects of your relationship.”

Ayu elaborated Nucha’s point further by explaining that financial awareness can be segmented into a pyramid hierarchy. The foundation of financial priority should be financial security, which includes a consistent cash flow, emergency funds and budgeting. 

On top of the aforementioned aspects, additional financial security can be gained through risk management and protection, which includes health insurance and life insurance.

The upper tiers of the pyramid should consist of financial comfort, investments such as real estate, passive income, a pension fund and an inheritance fund, in that order from most to least important.

“The sooner you start recognizing where you stand in this scale of priorities, the sooner you can act to distribute your financial resources to reach a stage where you are both financially comfortable and secure,” Ayu explained.

She further detailed the various options of the DPLK or pension fund products and how they differ with savings.

“Saving your money in banks yields you interest over time, while these products provide you different options for protection, whether that be for your health, life or even education. It depends on what you need and you have the agency to choose.”

Ayu also touched on the misconception that you need to invest a sizable amount of money each month to be able to afford the DPLK. In reality, she continued, it was actually very accessible, starting with just Rp 50,000 a month.

“It’s important that people are aware these products are flexible to your needs and are economically friendly, so we can improve the sandwich generation condition in Indonesia.”

Closing the discussion, both speakers shared some parting words along with financial management tips for the audience.

Nucha suggested the younger audience should start being mindful of their cash flow; simple tracking and budgeting of expenditures will do wonders.

“I also think that you need to set clear goals with your money, recognize what you want or need, whether that be owning a house or providing proper education for your children, being aware and communicating with your partner of these targets helps you comfortably plan your future.” she said.

Meanwhile, Ayu noted that making use of the tools the audience have access to and increasing their collective financial literacy is the most effective method in breaking the sandwich generation cycle.

“Learning through social media or webinars such as this one can help you deepen your understanding of what you can and need to do, because a lot of people are becoming more financially literate and they just need to act upon their knowledge now.”

You can watch the full webinar on the Post’s official YouTube channel or by clicking on the link below:

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