Why focus on older generations for retirement planning?

I have a few reasons. First, South Korea has the lowest birth rate among OECD (Organization for Economic Co-operation and Development) countries. As a result, it’s where the population is aging the fastest. In my 18 years as an advisor and among all the people I have met, barely anyone had a well-prepared retirement plan or was planning their retirement in advance. Most people I consult are in their 40s to 60s and have vague ideas about retirement. If they don’t prepare now, they won’t be able to retire when they reach retirement age. So, I wanted to help them prepare. I’m concentrating on this market so clients can retire properly and not fall into poverty.

How do you persuade older generations to plan?

I tend to have a lot of conversations with clients, listen to what plans they have and spend time having them picture their future. When I convey stories about how to respond to situations they will face ahead, the clients become immersed. That helps them focus on my recommendations and understand my intentions.

Other than news articles, I use a lot of statistical data. I normally show graphs of the Korea Composite Stock Price Index and the dollar and explain the inverse correlation between them. For example, if Korea loses competitiveness and the value of the client’s assets drops, I present indices of alternative investments, like dollars and gold, that can prevent asset value from declining. I also use demographic data to show that a country’s competitiveness is impacted by population trends and aging. I emphasize to my clients that preparing for retirement even a little is most important, even if they can’t afford it.

Do you have an example where your counsel led to a positive outcome?

There was a client who requested a consultation because their medical insurance was too expensive. I showed how the overall cost could be reduced by analyzing the coverage of all their policies after getting consent for information sharing. Interestingly, this client really liked insurance and had as many as 20 policies, some of which were repetitive. So, I showed them a before-and-after comparison of insurance premiums after modifying the coverages. I also gave advice on their current status and future direction. There wasn’t a big differencse in the premiums paid by the client, but after setting insurance qualitatively well, the client was very satisfied.

I always ask clients about the purpose of their savings and attach a tag to each savings product, such as “funds for travel in retirement.” Additionally, I simulate how much they can receive at the point of time they choose. That way, clients see how much will be lacking, and how much will be necessary. I provide retirement financial consultation in this way.

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Q&A: Yoon Suk Kim focuses on convincing clients near retirement age that it’s not too late to prepare for the next phase of their lives