Choice or compulsion? Sun Life study exposes Indonesia's widening retirement divide

A new study by Sun Life has laid bare a growing retirement divide in Indonesia, where working beyond retirement age is increasingly either a lifestyle choice or a financial necessity.

Launched in Jakarta on 10 February 2026, the report, “Retirement Reimagined: Asia’s Retirement Divide”, finds that 77% of Indonesian respondents either expect to continue working or have already worked past retirement age. While for some this reflects a desire for flexibility and fulfilment, for many it signals mounting financial pressure.

The findings arrive as Indonesia’s demographic profile shifts rapidly. According to ESCAP data cited in the report, 30.9 million Indonesians were aged 60 and above in 2023 (11.1% of the population), a figure projected to reach 64.9 million by 2050 (20.5%). Against this backdrop, delayed retirement planning and rising reliance on generative AI tools for financial guidance could widen existing gaps in preparedness.

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Two retirement realities

The study identifies two distinct groups: “Gold Star Planners”, who are financially prepared and can choose when and how to scale back work, and “Stalled Starters”, who delay retirement because they cannot afford to stop.

Among Gold Star Planners, continuing to work is often purpose-driven. Some 60% cite life purpose, identity and wellbeing as motivators, compared with 50% of Stalled Starters. Nearly half (48%) of Gold Star Planners say they look forward to retirement, underpinned by financial security, whereas 20% of Stalled Starters report feeling uncertain or pessimistic.

Financial pressure, however, remains the dominant narrative across the broader population. While 48% of respondents say they want to keep working for fulfilment, 48% to maintain social connections and 36% for mental stimulation, 71% say they need additional income to support daily expenses and long-term security. Among Stalled Starters who have postponed retirement, 43% cite the need to cover children’s education or living costs.

“We see two different realities. For those who are prepared, working longer can be a choice that offers flexibility and freedom. For others, working longer reflects the financial pressures they face. Planning for retirement early and comprehensively determines which reality one will experience,” said Albertus Wiroyo, president director of Sun Life Indonesia.

AI adoption rises as professional advice declines

One of the more striking shifts for marketers and financial services brands is the rapid adoption of generative AI as a source of financial planning information. Usage of tools such as ChatGPT and Google Gemini has more than doubled, from 13% in the previous survey to 30% this year.

At the same time, reliance on traditional professional advice has declined. Fewer respondents report consulting banks (31% this year versus 40% in 2024) or independent financial advisers (31% versus 44%).

For brands in financial services, this signals both opportunity and risk: growing digital curiosity paired with a potential gap in financial literacy and personalised guidance.

“AI can be a helpful starting point for seeking information, but it often lacks the context and level of personalised advice needed to achieve long-term financial security. As technology reshapes the way people plan for retirement, the involvement of professional financial advisers remains essential to ensure that decisions are supported by accurate, balanced information and aligned with each individual’s goals,” said Wiroyo. 

Security drives optimism – and anxiety

Financial security is closely tied to retirement sentiment. Among those looking forward to retirement, 60% cite financial security as the reason for their optimism, followed by stability (46%) and a greater sense of control over life transitions (23%).

Conversely, among those anxious about retirement, 44% fear being unable to support their families financially, while 37% cite financial insecurity more broadly.

Planning horizons remain short. Some 24% of respondents make no retirement plans at all before retiring, while 34% only begin planning within two years of leaving full-time work. Just 38% feel highly confident in their retirement plan.

The burden is compounded for Indonesia’s “sandwich generation”, supporting both ageing parents and children. As a result, 40% lower their lifestyle expectations and 23% postpone retirement.

Yet there is a strong cultural desire for autonomy. Some 77% believe retirement should be a personal choice rather than a mandatory age limit, and 81% support the idea of working beyond retirement age in Indonesia.

Health, too, plays a decisive role. Among those who have grown more optimistic about retirement, 58% cite better-than-expected physical health and 52% improved mental health. On the other hand, 22% of those planning early retirement point to poor health as the main reason.

“Health is a tangible form of wealth in retirement. It influences when people retire and the quality of life they experience during that time. Strong and comprehensive retirement planning will help deliver financial security and long-term wellbeing,” Wiroyo said. 

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