Retirement is often seen as a distant reality, something that can wait until later in life. However, according to 10-year MDRT member from Singapore Jerry Yeo, the earlier clients start planning, the better prepared they are to enjoy not only financial security but also a fulfilling retirement.

With over 10 years of experience in Retirement Adequacy Planning, five Court of the Table qualifications under his belt and serving more than 200 families, he shares how he helps clients build their retirement vision, highlighting the importance of both financial planning and creating a meaningful life after work. “When my clients realize that there are education loans but none for retirement, they understand the implications of acting without planning,” he shares.

The importance of planning ahead

For many, the transition from a regular paycheck to retirement can be stressful. Yeo likens it to depleting a stack of $100 bills over time — without careful planning, the money will eventually run out. But it's not just squarely about the money. “Retirement planning also involves considering one's well-being,” he emphasizes. “It’s not about how much money you have, but about how the funds can help you continue to live with purpose,” he explained.

A key example Yeo shared was of a client who planned to travel the world after retirement, a dream many share. However, after two years of constant travel, this client found himself feeling unfulfilled. Yeo highlights the importance of finding balance: too much of anything can lead to diminishing returns, even in something as exciting as travel. The process of retirement planning, Yeo believes, should consider both financial and emotional needs, ensuring clients can enjoy their remaining years with purpose and satisfaction.

Overcoming common obstacles to retirement planning

Many clients struggle to take the first step in retirement planning, citing reasons such as, “It’s too far away” or “I don’t have enough money to save”. Yeo uses real-life examples to show clients the importance of early action. “I often point out elderly individuals still working well into their later years and ask clients if they would want to be working at that age, still trying to make ends meet.” These examples help highlight the risks of neglecting retirement planning.

One way Yeo makes the process more manageable is by breaking it down into small, achievable steps. He compares retirement planning to organizing a barbecue session with friends: while it may seem overwhelming at first with food preparation and organizing the session, when broken down into steps — such as setting the date, choosing the venue, and deciding on food, it becomes a manageable task. Similarly, when it comes to planning for their retirement, Yeo encourages clients to start with low-commitment savings plans to build a strong foundation step by step.

For younger clients, Yeo explains the power of compounding to illustrate the long-term benefits of early retirement planning. By showing data with help from a Microsoft Excel sheet, he demonstrates how small, regular contributions can grow exponentially over time if clients start saving in their early life. He also challenges the common misconception that government social security schemes such as the savings in the Central Provident Fund (CPF) are sufficient for retirement. Using tools available on the CPF website to project the numbers, Yeo helps clients realize that CPF savings alone won’t be enough to maintain their desired lifestyle.

It’s never too late to plan

While some clients who are past young adulthood may feel they are behind in planning for retirement, Yeo reassures them that it’s never too late to make a positive change. “The key is to understand the three variables of retirement planning: time, rate of return, and commitment,” he explained. By adjusting these factors — whether it’s delaying retirement age, increasing savings, or diversifying investments — clients can still achieve a fulfilling retirement period.

Yeo also uses success stories to inspire clients, sharing examples of his clients who started late but still managed to secure their financial futures. “You are never too old to start planning,” he says. “The earlier you start, the more options you have later on.”

A holistic approach to estate planning

After planning for retirement, it is only natural for the conversation to progress towards planning for a client’s finances in the event of incapacitation or death. In the context of estate planning, Yeo is sensitive to the cultural dynamics of his clients. Estate distribution can be a difficult subject, especially in Asian families, so he uses newspaper articles to show real-life implications. He also introduces concepts like Lasting Power of Attorney (LPA) to help clients understand the importance of protecting their welfare in the event of incapacity, eventually leading to discussions about wills and estate planning.

Yeo's approach to retirement planning in Singapore is comprehensive, considering both financial security and personal fulfilment. For example, he suggests a "kueh lapis" (a multi-layered steamed cake popular in Southeast Asia) approach, using a mix of financial instruments — government schemes, endowments, and property income — to create a balanced retirement portfolio. This diversified approach ensures clients don’t rely on a single income source and can navigate uncertain economic conditions with confidence.

A fulfilling retirement starts with a vision

Ultimately, Yeo’s goal is to help clients envision a fulfilling life after work. By addressing both financial and emotional aspects of retirement, he empowers clients to take charge of their future, whether they’re planning to travel the world, take up new hobbies, or simply enjoy a life of relaxation. With thoughtful planning and a clear vision, retirement can become a rewarding chapter of life for clients — rather than something to fear.

Contact: MDRTeditorial@teamlewis.com

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Helping clients build their retirement vision