FINANCIAL RETURN ANALYSIS FOR RETIREES: A CASE STUDY OF RECEIVING A PENSION FROM THE NATIONAL SAVINGS FUND

Abstract

This study aims to analyze the financial returns for retirees, with a case study of receiving a pension from the National Savings Fund. It compares the rate of return on investments against inflation rates, fixed deposit interest rates, the National Savings Fund’s return rates, and government bond interest rates, utilizing secondary data for analysis. The analytical tools include the Payback Period, Net Present Value: NPV, and Internal Rate of Return: IRR.

The study found that individuals who start saving from ages 15 to 60 will achieve a Payback Period by the age of 79.14. For those who begin to save from ages 30 to 60, the Payback Period is reached at age 75.62. Furthermore, if saving starts from ages 45 to 60, the Payback Period is reached at age 77.55. However, for the same starting age range of 50 to 60, a different scenario suggests a Payback Period at age 93.91. In terms of Net Present Value and Internal Rate of Return, the study indicated that individuals who start saving at a younger age will receive higher returns than those who begin saving later in life.