Members Shift Retirement Plans Into Repair Mode: Print Preview
- Increase in hardship withdrawals may have slowed.
- Retail investment penetration at credit unions, banks still at less than 1%.
- Rethinking of the standard 401(k) plan being considered in recession’s aftermath.
Turn the clock back a few years and the scene at some companies went one of two ways.
While credit unions and banks are offering investment and insurance products to capture the financial advice business of existing customers, how well are they achieving that objective? Kehrer Saltzman & Associates, a Waxhaw, N.C.-based wealth management consulting firm, wanted to find out. Roughly 12.7% of U.S. households reported that they had purchased an investment or insurance product at their primary bank or credit union.
Since the typical financial institution offering investment services has been doing so for 14 or 15 years, this cross sell ratio suggests that banks and credit unions have been penetrating less than one percent of their customer base per year, the firm noted.