5 Smart Investment Options to Prepare for Retirement

5 Best Types of Investments for Retirement Funds                    

1. Fixed Income Mutual Funds
2. Money Market Mutual Funds
3. Gold
4. Property
5. Dividend Stocks

Effective Retirement Investment Strategies                                 

1. Set Clear Goals for Your Retirement
2. Align Your Investments with Those Goals
3. Diversify Your Portfolio
4. Be Wise in Business and Reduce Debt
5. Start Now

With DBS Treasures Priority Banking, Prepare for a Safer and More Purposeful Retirement                                                            

When you retire, the most important thing is how your investments can support your chosen lifestyle—whether that means embracing slow living, traveling, pursuing hobbies, or more. And in fact, suitable investment instruments aren't limited to mutual funds.

So the question is: which investment options are right for these needs?
Read on to discover the investment choices that best match your financial goals in retirement.

5 Best Types of Investments for Retirement Funds

Here are some investment instruments worth considering as part of your retirement preparation strategy:

1. Fixed Income Mutual Funds

One of the most recommended investment instruments for retirement planning is Fixed Income Mutual Funds (RDPT). This type of fund allocates most of its assets to debt securities or bonds, issued by either the government or corporations.

Due to its more stable nature, RDPT offers the potential for relatively consistent returns with lower risk compared to stocks.
In other words, it’s a suitable option for those approaching retirement age (especially over 50), who tend to prioritize stability and asset value protection.

2. Money Market Mutual Funds

Another worthy option for retirement planning is RDPU. Unlike other types of funds, RDPU is known as the lowest-risk instrument.

This is because it allocates funds to money market instruments such as deposits and bonds with maturities of less than one year.
As a result of its short-term and stable nature, RDPU’s value tends to grow steadily without sharp fluctuations.

This makes RDPU a popular choice for many investors, especially when retirement is just around the corner.

3. Gold

Next, you can also consider gold as an investment instrument for retirement preparation. As an asset that has long been used to preserve wealth, gold offers several advantages.

First, gold is a highly liquid investment. This means you can sell it easily anytime and anywhere—even while you're abroad.

While its potential for value appreciation may not be as high as stocks or property, gold has shown a stable long-term growth trend.
Its value tends to rise gradually, and more importantly, its price fluctuations are relatively mild.

In other words, even during market downturns, the decline in gold’s value is usually not as steep. Moreover, during recent periods of global economic crisis, gold has often shown strong performance.

4. Property

Property investments such as apartments, rental homes, or land in strategic locations offer benefits through both capital gains and passive income.

Although it requires a larger capital outlay and more complex management, property can become a high-value asset over the long term and may support a luxurious retirement lifestyle.

5. Saham Dividen

Another attractive investment option for long-term retirement planning is dividend stocks.

Unlike speculative stocks, dividend stocks offer the dual benefit of potential capital appreciation and regular dividend payouts.

These stocks typically come from well-established companies with solid financial performance and a track record of consistently rewarding shareholders with cash dividends.

Furthermore, the regular cash flow from quarterly or annual dividends can play a key role in sustaining your retirement lifestyle.
In terms of risk, dividend stocks also tend to be more stable and resilient against market volatility.

Effective Retirement Investment Strategies

Memilih instrumen investasi hanyalah satu bagian dari perencanaan. Untuk benar-benar sukses mempersiapkan dana pensiun, Anda memerlukan strategi yang tepat dan terukur, seperti:

1. Set Clear Goals for Your Retirement

First, envision the kind of retirement lifestyle you desire. Do you see yourself living a peaceful life in the countryside, or staying active by traveling to various places?

Once you have that vision, the next step is to identify the financial requirements to support it. This includes calculating the ideal retirement fund you’ll need to prepare.

It’s important to understand that this amount will vary from person to person, depending on lifestyle, health conditions, and where you plan to live during retirement. As a simple reference, you can use this formula:

Highest Monthly Expenses x 12 = Estimated Annual Expenses.

For example, if your highest monthly expense is IDR 10 million, the minimum amount you should prepare would be:
IDR 10 million x 12 = IDR 120 million per year.

That amount only covers one year of living expenses. If you plan to retire for 20 years, you’ll need an estimated IDR 2.4 billion—not yet accounting for inflation and unforeseen expenses.

2. Align Your Investments with Those Goals

Once your goals are clear, you need to align your investment choices with your time horizon and risk profile.

If your retirement is still more than 15 years away, investing in stocks or equity mutual funds may be more suitable due to their long-term return potential.

3. Diversify Your Portfolio

Don’t put all your eggs in one basket. Diversify by combining different instruments such as mutual funds, property, and gold to spread risk and achieve more stable returns.

4. Be Wise in Business and Reduce Debt

During your productive years, you have the energy, network, and opportunities to build businesses and grow your assets. Make the most of this period to lay a strong financial foundation for retirement—but always make decisions wisely.

One key thing to avoid is accumulating consumer debt. While it may seem beneficial in the short term, it can disrupt your cash flow in the long run.

5. Start Now

Time is your most valuable asset in investing. The sooner you start, the greater the compounding effect you’ll enjoy.

For instance, by investing regularly in mutual funds starting in your 30s, you could accumulate significant wealth by the time you reach 55.

With DBS Treasures Priority Banking, Prepare for a Safer and More Purposeful Retirement

So, preparing for retirement isn’t just about saving—it also requires choosing the right investment instruments to accelerate your asset growth.

In this regard, mutual funds can be an excellent option due to their flexibility. If you’re looking for a comprehensive, professionally managed investment solution, it’s time to rely on DBS Treasures priority banking as your trusted partner.

You’ll be supported by professional Investment Managers who help manage your portfolio optimally.

What’s more, convenient transactions are available through the digibank by DBS Application—from buying, selling, and switching funds to registering your Single Investor Identification (SID)—anytime, anywhere.

You’ll also benefit from curated market analysis delivered by a team of financial experts, powered by Artificial Intelligence and Machine Learning (AI-ML), giving you timely investment insights tailored to your risk profile and portfolio needs.
These insights are complemented by curated solutions in both investment (Grow) and insurance (Protect), empowering you to invest confidently using your preferred channels.

Make your dream retirement a reality with smart investments—partner with DBS Treasures priority banking today. Click here to get started.