Simple & Direct Retirement Planning Flow with Edge
Retirement planning doesn’t have to be overwhelming—but it often may feel that way, both for consultants and clients.
One of the most common challenges consultants faces is this: once a client has committed to an accumulation plan, they often assume that alone is enough to cover their retirement.
Next, retirement planning involves numerous moving parts, and without a clear planning tool to guide the conversation, it can quickly become overwhelming. From desired lifestyle and inflation assumptions to CPF integration, healthcare needs, and more—it’s easy for both clients and consultants to lose clarity without a structured approach.
Also, throwing out a general number—like the often-quoted "$1 million for retirement"—can confuse rather than clarify. While it may be a helpful benchmark for someone nearing retirement, it’s not relevant for a 30-year-old client whose needs and cost projections will evolve dramatically.
Previously, we touched on important retirement-related costs—such as caregiver expenses and Shield Plan premiums. Advisors can incorporate these into the Retirement Planning tab on Edge by increasing the desired monthly income (e.g., adding projected caregiver costs and Shield Plan premiums to the base lifestyle budget).
Why Shield Plan Expenses Matter in Retirement—and How to Present It with Edge — A-Think Lab
Disability Scenario Flow with Script: A Deeper Dive into an Underserved Space — A-Think Lab
However, this approach may feel overwhelming to some clients. For example, a prospect who envisions spending $2,000/month in retirement may feel discouraged if that number jumps to $4,000/month after factoring in healthcare-related costs—potentially making retirement feel more like a burden than a goal.
Hence, it’s crucial to first assess whether the client is mentally and financially ready to absorb those risks within the same conversation. If not, consultants can consider staging the discussion across multiple appointments—starting with core retirement needs and layering in healthcare planning at a later phase.
Sample Conversation Flow with Edge
We’ll be showcasing two traditional approaches to retirement planning using Edge—one based on lump sum maturity planning, and the other illustrating a dividend-funded strategy through Edge.
1) Lump Sum Method
Consultant: "Alright, [Name], to understand how your current accumulation plan aligns with your retirement goals, I have two questions for you: First, at what age would you like to retire, and next, how much would you want to have to spend each month during retirement?"
If the prospect hesitates or isn’t sure about the amount, you can guide them by using their current income as a starting point—since expenses will still exist and they’ll want to enjoy life. For a more conservative estimate, suggest using 75% of their current income.
Client: "Maybe retire at 65, and I'd like about $3,000 a month?"
Consultant: "Great, let me plug those into your retirement timeline. And based on your current accumulation plans—your Great Wealth Advantage is projected to have about $350,000 by then, and your PruWealth should add another $200,000.
On top of that, with current CPF monthly payouts at $1,800 based on your income hitting the FRS level, here’s how your retirement is shaping up."
"Based on your desired retirement lifestyle, you’ll need approximately $2.3 million by age 65 to support it. The key reason is the $3,000 per month—or $36,000 a year—which, when adjusted for inflation, could grow to around $66,000 annually and growing."
"Factoring in your current plans, your funds would sustain this lifestyle until about age 75. I hope this gives you a clearer picture of how the pieces fit.
At this stage, whether the prospect already has an accumulation plan or not, consultant can offer a well-placed compliment to build rapport and set the stage for introducing a proposal.
If planning is already in place: "You’re actually ahead of many people—having already started planning and gaining clarity around your retirement goals. With this foundation and understanding, you’re in a great position."
If no planning is currently in place: "Even without a plan set up yet, you’re ahead of most people because you now have clarity on your potential shortfall—something many never take the time to understand. That awareness puts you in control moving forward."
—————-
With the framing now in place, the consultant can smoothly transition into opening the proposal angle:
Consultant: "Take a guess: how much would you need to save each month in a regular bank account to reach your desired retirement lifestyle?"
Client: "Hmm... maybe $2,000?"
Consultant: (Refer to Figure in Table) "Not far off! Based on the projections, it’s actually closer to $4,000 per month if you’re just saving in cash.
But here’s the good news—if we use a plan that assumes a projected 8% return, you’d only need to set aside about $1,200 a month to close the gap. Would you be open to exploring how this plan could work for you?"
2) Dividend Method
Following a similar conversation flow, let’s now assume we’ve reached the stage where we’re summarizing the prospect’s current planning and we’re just about to enter that information into the system to visualize how everything comes together.
Consultant: "Currently, you have two ILP plans in place. Based on your policy details, Policy A is projected to grow to around $400,000 by age 65, and Policy B to about $250,000—bringing your total to roughly $650,000 at retirement."
"If we switch these into a dividend-paying fund at that point, with a conservative 4% return, that could generate approximately $2,200 in monthly dividends."
"When we combine that with an assumed CPF FRS payout of $1,800 per month, here’s how your overall retirement income picture comes together."
Since the total monthly dividend isn’t enough to generate a positive balance from the start (especially with no savings amount entered), we’ll switch to table mode to provide a clearer explanation of the projection.
Consultant: "With these passive income planned, you’ve built a solid foundation—about $48,000 annually. However, this may still fall short of your desired retirement lifestyle.
Due to inflation, your target of $3,000 per month—or $36,000 a year—could grow to nearly $66,000 annually just to maintain the same standard of living."
That said, you’re not far off. To fully close the gap, you’d need to accumulate around $1 million as a base. The good news is that this is an achievable goal, especially with the time horizon you still have ahead.
If we use a plan that assumes a projected 8% return, you’d only need to set aside about $1,135 a month to close the gap. Would you be open to exploring how this plan could work for you?"
