A milestone for baby boomers—generally classified as those born between 1946 and 1964—is just around the corner. On Jan. 1, 2011, the oldest of the generation will turn 65.
Staff interactions with boomer members can help steer them in the right direction, positioning your credit union as the financial institution of choice when they decide where and how to manage their retirement income.
Here are steps your credit union can take to help retain boomer members:
Spotting boomer members is only half the battle. Knowing ways to discuss their retirement plans, and the role your credit union can play in those plans, will help retain boomers and boost business for your credit union.
Boomer Loyalty Is Tenuous
About 78 million people will reach retirement age during the next 18 years. The impact on credit unions will be significant.
As a group, boomers hold more than 70% of all U.S. consumer assets, including $30 trillion in household assets, $11 trillion in investable assets, $3 trillion in spending power, and an incredible $750 billion in discretionary income.
While not all boomers are credit union members, roughly 5.6 million are, and they hold approximately $617 billion in net worth. As credit unions continue to look for new income sources, it’s critical to attract the wealth baby boomers will carry into their retirement by developing strategies to retain boomers.
This won’t be easy. A recent survey by CUNA Mutual Group shows member loyalty is tenuous, at best, and suggests boomers think of other financial institutions ahead of credit unions for their retirement investment needs.
CUNA’s 2010-2011 Environmental Scan contains strategies for serving this important demographic.
WASHINGTON (5/4/15, UPDATED 1:45 p.m. ET)--Building on the success credit union advocates are having in getting data breach legislation introduced in the U.S. Congress, today CUNA launches a new call to action to garner support for the recently introduced House Data Security Act of 2015 (H.R. 2205).
CUNA announces a new way to keep credit union readers up-to-date and well-informed. Today, CUNA unveils news.cuna.org.