CUs shouldn't overlook boomers' retirement needs: Filene
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.