A dialogue between two friends about the father retirement

Asraf: Hey friend, what are you doing tomorrow?

Harun: Nothing much. I'm helping my dad, who retired. He takes care of the land and the farm. We're starting to fertilize the coconut trees and banana plants, so I'll be busy assisting him tomorrow.

A: What's your dad been up to since he retired?

H: Not a lot. He doesn't have much money to start a business and he's not really into that anyway.

A: Life gets tough when you retire, right? Does your dad get a pension?

H: Yes, he does. He retired with a pension at 55. It's the pension that helps us manage our expenses. He also gets some money from the interest on his savings.

A: His savings might not be much then.

H: You're right. He doesn't have a lot. He converted part of his pension into a fixed deposit along with the gratuity and provident fund savings to make the most of it.

A: What's "commuting pension" mean?

H: When you retire, you can choose to get 50% of your pension upfront for ten years. It's like getting a lump sum in advance.

A: So, later on, you only get the remaining 50% as regular pension.

H: Exactly.

A: What's the advantage in that?

H: There are a few benefits. If you put the money in a bank, the interest you earn each month is more. Plus, if the pensioner passes away, the remaining amount doesn't have to be given back.

A: That's a big advantage if the pensioner dies soon after. Not many people live up to 65 years anyway. What else?

H: The money can be used for starting a business, building a house, children's weddings, and more. So, most people choose to commute their pension. But they still receive the full pension amount, including dearness allowance.

A: After retiring, people need more money, especially if they get sick. Why isn't the pension the same as their last salary?

H: It sounds good, but remember, pension comes from taxpayers' money. The person taking the retiree's job also needs a full salary. Increasing taxes wouldn't be popular. Do you want higher taxes?

A: No, I guess not. But does that really solve the pensioner's problems?

H: No, but there are other solutions. That's why employees are encouraged to save through insurance, provident funds, and government/private schemes.

A: I get it. People should start saving early in their careers. So, with their pension and personal savings, they'll have enough after retirement.

H: You're right. It requires planning throughout life.

A: Then retirement won't be so worrisome.

H: When will your dad retire?

A: Probably in a year or two. I hope he's preparing in advance.

H: Well, Asrar, your education isn't finished, your sisters aren't married, and your house needs repairs.

A: Are you saying we'll need more money when my dad retires?

H: Exactly. But I think your dad knows and has probably been planning. Most people do; otherwise, life gets tough.

A: That makes sense. Now I understand why my dad has always been careful with money.

H: It's about time you realized that. Parents always want the best for the family.

A: You're right, I know. Have a great weekend!

H: You too, Asrar. Goodbye!