In 2020, the Central Bank of the Philippines reported that 80% of Filipinos are financially unprepared for retirement. In a survey by the Philippine Statistics Authority, out of the 7.6 million Filipinos aged 60 and above, only 20% are covered by the Social Security System, a state-run social insurance program for private sector workers, or the Government Service Insurance System (GSIS), the state pension fund.   

Since most of the Generation Y and Z clients of Brylline Dhia Francisco-Concepcion, a four-year MDRT member from the Philippines, prefer to retire between 40 to 50 years old, she tells them retiring early depends on what they can save and invest based on their current earning capacity to sustain their lifestyle in their golden years.  

However, with Filipinos needing more money in their pension when they retire, Concepcion helps her clients through sound financial management planning. “I analyze their current financial situation, such as their savings, expenses, investments, income, and family setup. This way, I’ll know how we can move forward,” she explains.    

During the initial consultation, some of Concepcion’s clients realized their ideal retirement age wasn’t feasible. They need to work or save for about five to eight more years to be realistic about their goals. “Whatever the current earnings, for long as they are disciplined, they will be able to achieve financial independence and retire when they want to.”     

Another case is when her clients remark that they are still too young to worry about the future. “I tell them that the sooner they start, the better. The premiums are still affordable, maximizing the returns and length of coverage,” she explains.  

Achieving financial independence requires teamwork between the client and financial advisors. “We assess their financial capacity and help them adopt good savings habits,” she says. “To create healthy relationships with clients, we must be there for them whenever they need us or have questions. When they do, we should respond as soon as possible.”   

Concepcion recommends assessing the time, money, and interest. “Time because they need to put their plan in motion as early as they can, money to invest regularly and allocate to their policies, and last but not least is interest to be consistently motivated to secure their future.”    

Besides these recommendations, Concepcion stresses that retirement planning will only optimally benefit her clients if they have the foresight and the decisiveness to prepare for it early enough. “The best time to do it was years ago. The second best is now, so I tell my clients not to delay anymore.” 

Contact: MDRTeditorial@teamlewis.com