A comparative study of three pillars system and banking methods in accounting long-term purposes of retiree in Indonesian saving account

Human productivity is the main capital in economic activity. This main factor leads to the fact that the continuity of human resources in economic sector depends on the limited productivity age. In other word, once the economic agents has reach the limit of the productivity age. Hence they enter the pension state. In this case, the preparation of 'old-age' fund become crucial and should be initiated before the pension state to avoid the destitute condition of retiree. Two most simple and familiar methods in preparing the pension fund are The Three Pillars system and banking methods. Here we simulate the both of the methods for the synthetic data of investment program and analyse the result. The result gives the idea that the Three Pillar System has effective prospect in Long-term scheme. However, the banking method is likely adapted to the short-term plan.