Encouraging clients to plan for their golden years

Discussing retirement plans might not be the easiest task for financial advisors in Singapore. The current minimum retirement age in Singapore is 63, and all Singaporeans will have access to their Central Provident Fund (CPF) by the age of 55. Hence, are guaranteed some basic funds for retirement. 

However, some clients may have early retirement in mind. This means they will have to ensure that their retirement planning policies, along with other protection policies such as life insurance and critical illness plans are set in place while they are still young.  

Since this is the case, how can financial advisors assure clients that early planning is key to having a comfortable retirement life? Norliza Binte Abdul Karim, a two-year MDRT member from Singapore, shares how she, as a protection-first advisor, communicates the importance of retirement planning from a realistic and practical perspective. 

Protecting dreams 

Before Norliza introduces retirement planning policies to her clients, she would first ensure that her clients are well protected with life insurance and critical illness policies. Only then would she broach the topic of retirement planning. For a start, she asks them to paint her a picture of their dream retirement state. This would usually include being debt-free, achieving some, if not all, of their life goals and ageing gracefully. Once her clients have expressed their desires, she would then speak from a realistic point of view by asking, “How can those dreams come true if we do not have money for what we want?” 

Having solid financial resources and sufficient savings in their golden years will ensure that her clients can cope with inflation without compromising on their lifestyle in the long run. “While wealth protection planning takes care of your loved ones in unforeseen circumstances, retirement planning takes care of yourself should you be blessed with good health and long life,” she says.  

On top of this, Norliza also explains the benefits of retirement planning to her clients, which includes having sufficient funds to take care of themselves holistically in their golden years instead of having just enough to make end meets if they solely rely on savings in their CPF account. Even if they choose to work then, the objective would be to keep themselves mentally and physically healthy.  

Starting them young 

For younger clients, Norliza uses a different approach to help them better imagine their life after retirement. Due to the influence of social media, she believes some younger clients may equate success to the lives of social media influencers they see online, and would want to achieve that quality of life as they get older.  

Norliza also appeals to their need to live different, if not better, lives from their parents who may still be working well into their retirement years. For younger clients who do not come from an affluent background, she encourages them visualize the life they aspire to live. 

“As for young people who live a comfortable lifestyle, I will tell them that retirement planning is also applicable to them because if their parents are comfortable, I am sure they want to be more comfortable when they reach that age,” she adds.  

Providing a holistic picture 

Above all, Norliza strongly believes that working during retirement should be a “choice”, not a “need,” and having the right retirement plan will directly impact this. 

To allow her clients to fully understand the advantages of planning for retirement, she educates them about the importance of achieving financial freedom and lightening the financial burden on their children before retirement. As for clients who are single, she reminds them that the “there is no Plan B to fall back on,” and that they can only count on themselves.  

By allowing her clients to understand that retirement planning is essential and integral to their lifestyle during their sunset years, Norliza helps to ensure they have the best options to secure a comfortable retirement in Singapore.  

Contact: MDRTeditorial@teamlewis.com