CUs shouldn't overlook boomers' retirement needs: Filene

January 15, 2015

MADISON, Wis. (1/16/15)--A new report from the Filene Research Institute describes the approaches credit unions can take to become the ideal financial advisers for pre-retirees.

"Baby Boomers and Retirement Planning: Recent Trends and Future Implications for Credit Unions" describes the results of Filene's survey of more than 700 pre-retirees.

The report offers recommendations for how credit unions can help their members achieve financial stability in retirement. Among the recommendations:

  • Credit unions can and should target wealthy households with asset-management services, to increase their footprint in the boomer market and to increase the share of their assets in credit union-related products;
  • Credit unions should target low-income households with financial advice to help them start planning for retirement as early as possible;
  • It will be important to discuss the wide range of options boomers have available to them. Start with stable fixed investments such as bonds. Build a diverse portfolio with an appropriate level of risk based on the individual's risk profile;
  • Never overlook the importance of educating boomers on retirement savings, expectations and behaviors;
  • Boomers give credence to the recommendations and referrals from friends and family in regards to financial advisers, so credit unions should leverage the personal relationships they have with existing members; and
  • As boomers continue their retirement journey, credit unions have a tremendous opportunity to offer guidance and support through advice, practical services and a diverse menu of investments.

Plan It, a retirement-planning toolkit