In the Philippines, where the economy and workplace dynamics constantly change, companies must provide retirement safety nets to their employees. However, corporate retirement planning should not be viewed merely as a compliance requirement; it can be a powerful tool for ensuring business stability and talent retention while securing employees' financial future.

Nelilyn “Nelly” Gado honed her expertise in guiding corporations on retirement planning. Before becoming a full-time financial advisor, Gado spent five years in sales, where she learned to understand client needs and provide personalized solutions. She then moved to the bancassurance industry, enhancing her skills in financial products and building strong client relationships. When she got pregnant during the pandemic, she focused on building her agency. This work experience helped establish lasting, trust-based partnerships with high-net-worth clients and corporations, which remain key to her success today as a financial advisor for 14 years.

Gado, a two-year MDRT from Bataan, Philippines, stresses the importance of educating company decision-makers about the complexities of retirement planning in the Philippines, particularly with Republic Act 7641, the Retirement Law. This law mandates that private sector employees who have served for at least five years and reached 60 are entitled to retirement benefits determined by their length of service and salary.

“Beyond this, compliance should not be the sole reason for setting up a robust retirement plan for their employees. It can serve as a strategy to attract and retain top talents in this competitive job market as it reassures employees that the company will reward their years of service.”

Following a structured retirement planning process

Gado collaborated with two fellow financial advisors to design a corporate retirement program named “Your Unique Retirement Initiative (YURI).” This program follows a three-step process for servicing corporate clients’ retirement planning, which includes engaging with key decision-makers, examining employee profiles and workforce composition, and designing the company’s most suitable retirement benefit program.

The nature of the program means that Gado primarily meets her corporate clients in person. The process begins with a discussion involving the CEO, HR department, and finance team. “Many companies are unaware of the potential financial and legal risks associated with an inadequate retirement program. By discussing existing gaps, future liabilities, and the implications of the Retirement Law, I make my clients understand why proactive planning is essential.”

Once the decision-makers are on board, the next step is gathering and analyzing the company’s employee database. Key factors such as the age distribution of employees, salary brackets, and length of service are crucial in determining retirement policy gaps.

“Companies need to identify employees approaching retirement age and evaluate whether current financial reserves are sufficient to cover their retirement benefits. This awareness phase sets the foundation for a data-driven and sustainable retirement plan.”

The final step entails crafting a retirement benefits package for the company and its employees. Gado guides her clients in choosing between individual policies for each employee or opting for a keyman policy, which focuses on insuring key personnel whose loss would significantly impact the company.

A well-structured retirement program should be financially sustainable and flexible enough to accommodate future organizational changes. The goal is to create a solution that balances employee needs with corporate financial stability.

Building long-term corporate client relationships

“Retirement planning is not a one-time transaction but a long-term partnership between financial advisors and businesses. Servicing corporate retirement accounts requires ongoing engagement, trust, and adaptability as the company and market evolve.”

Gado exemplifies this principle through her 14-year partnership with a family-run oil company. Over the years, she has managed the company's retirement accounts and become the go-to financial advisor for the business owner and his family. As the owner prepares for retirement, Gado has worked closely with the next generation of incorporators, ensuring a seamless transition of financial responsibilities and securing the company’s future.

“Demonstrating market expertise is crucial in maintaining long-term relationships with corporate clients. As a financial advisor, staying updated on market trends reassures your clients that your advice remains relevant and timely, guiding their businesses through the constantly changing landscape."

Gado’s financial advising approach shows that corporate clients who have a well-designed retirement program can offer strategic advantages beyond compliance with the law, fostering employee loyalty and ensuring economic stability for their company and the workforce.

Contact: MDRTeditorial@teamlewis.com

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Future-proofing the workforce: A corporate retirement planning guide