As a financial adviser specializing in retirement planning andretirement income planning, I work every day with baby boomers. So,I am acutely aware of members' concerns about the current economyand its impact on their future needs.

I have been an adviser for more than 30 years, but the last 12years have been the most challenging. We have had two major marketcrashes of roughly a 50% drop in value and members' retirementaccounts that were invested have struggled, with some seeingvirtually no gains for 10 years or more.

Now, we're in a long- term, low-interest rate environment thatis devastating to those conservative savers and investors – many ofour credit union members – who seek to avoid risk. They are nowearning next to nothing on their savings, money market accounts andcertificates of deposit.

The first baby boomers turned 62 in 2008 and began retiring.Many also began drawing Social Security payments. This wave ofretirement has continued at a time when the economy crashed andretirement account values declined and interest rates fell tonearly 0%. Some have had to return to work in order to haveadequate income. Many have sought safety and guarantees inunprecedented numbers.

But during these difficult times, credit union membership anddeposits have grown enormously as people have become disenchantedwith bank behavior and growing fees. We have become the safer,friendlier harbor in the storm.

Retirees, in general, have always been more conservative withtheir money; no more accumulation time, they have what they have.But the great recession and its effects are that our members wantsafety, guarantees and assurances and credit unions are wellpositioned to help them. Credit unions offer higher rates on theirsavings and CDs combined with lower fees on other products andservices. We value our members and put their interests first. Weencourage responsible borrowing where necessary and debtelimination as a goal.

Our members still need to retire, still need to save and takeaction. By helping them examine their whole picture of assets,liabilities, and income sources, we can help them put togetherplans and strategies to achieve their goals.

In the past, a retiring member may have been content to leave alarge retirement account such as 401k or individual retirementaccount, fully invested in a balanced portfolio and chose to fundor supplement their retirement income via a 4% or 5% withdrawalannually. That approach, however, exposes the member to poor marketconditions and/or downturns that can lower their income, or risktheir principal, and can even risk completely running out ofmoney.

Recently, I worked with a member who retired mid-year. Themember had a large 401k, no pension, and was dependent upon the401k account for a major portion of retirement income needs. Themember was very hesitant about the economy and market risk.

Working with the member, I was able to show how to move aportion of the account to an IRA annuity that could guarantee anincome flow for life that actually met the member's basic expenseneeds, while leaving the rest of the member's monies investedconservatively for modest growth to guard against future inflationand unexpected expenses. The member was able to gain a level ofsecurity on retirement, for life, in spite of the current economicuncertainty.

To meet credit union members' needs and desires for safety andassurances, we're equipped to use more conservative tools such asannuities and other types of investments that can offer variouslevels of guarantees or, are just very conservative choices.

Medicare is another sensitive topic with boomers. Many of themhave parents who are on Medicare and the talk of changing it is asensitive topic. Uncertainty is the enemy of feeling safe andsecure.

I am finding most people are well aware that Medicare's costsand the current structure may be unsustainable, but also like thegeneral population, are equally divided about the right solution.The uncertainty is causing my members to be even more cautious andwhere possible, they're taking steps to build extra savings orplanning larger cushions of cash or reserves than they would havein the past. Most are more fearful benefits will be cut in thefuture, no matter which political party wins in November.

The looming election is another distraction and the uncertaintythat most recognize has the potential for big impacts on thedecisions looming, not just on Medicare, but on Social Security andtaxes. Uncertainty results in decisions being put on hold, and wesee that daily. The impact on the economy is people spending less,which is self-defeating in a consumer-driven economy 

Given all the uncertainties, here are at least five criticalthings for boomers near, or within five years of, retirement, toconsider:

Max out your retirement savings opportunities via your 401k, IRAor Roth IRA. Very few retire with too much savings.

Reduce your risk exposure to market downturns. Now is not thetime to be aggressive. It is the time to be more about protectingassets.

If you are eligible, which means you are typically age 60, many401k plans allow in-service rollovers to IRAs. If you are unhappywith the investment choices or performance or fees in your 401k,you can move most of the money to IRA choices that can improvethose issues, while leaving the 401k account open for maxing outsavings and matching opportunities until you retire.

Start planning for your health care costs and needs inretirement. Understand your retiree health care plan choices and ifyou have not already done so, consider the need to put a good longterm care insurance plan in place.

Reduce and or eliminate debt as much as possible before yourplanned retirement date.

There are many steps to preparing for retirement and a great oneis getting help at a credit union. Credit unions are positionedextremely well to provide the low cost, conservative approachesthat our boomer members value and will likely value for years tocome. 

Robin Arnold is the trust liaison officer for Palmetto CitizensFederal Credit Union's trust and investment services program and isvice president of wealth management with CUNA Brokerage ServicesInc. Contact 803.312.7984 [email protected]