A combination of retirees' increased longevity, demographictrends and structural changes to the U.S. economy may collide toput an end to retirement as we all know it.

That's according to Hendrix Niemann, managing director of wealthmanagement for CUNA Brokerage Services Inc., who spoke at CUNA'sAmerica's Credit Union Conference in San Francisco last week.

“Credit unions are facing major changes to their membership andtheir asset base. Baby boomers are starting to enter retirement,which means their money will be leaving the credit union as theyspend down what they have saved and invested for 30-40 years.”

As a result, they will not be borrowing or depositing, hewarned.

“Credit unions need to have a concrete plan in place forreplacing those assets, and also for retaining the assets that aregoing to be passed on to the next generation,” Niemann said.

Over the past 800 years, there have been no documented examplesof an economy that had to emerge from a financial crisis whilesimultaneously absorbing the effects of an aging population, headded.

“Two-thirds of all the people in the history of the world whohave lived past the age of 65 are alive today,” Niemann said.“People didn't used to age. They died.”

Today, the average 65-year-old male has a 50% probability ofliving to be 85 years old with the average 65-year-old femaleliving to be 87, which makes the average length of retirement atleast 21 years, he pointed out.

If the person is part of a couple, there is a 50% probabilityone of them will live to be 91, which makes the average length ofretirement jump to 26 years, Niemann said.

“Many people don't realize it, but we've entered a new normalfor retirement. The golden age of retirement is not coming back.Many credit union members think it will, but it's not comingback.”

The baby boomers are the largest generation in U.S. history everto retire and the vast majority of them have not saved enough forretirement, Niemann said. As they realize this, many seniors arepostponing retirement or re-entering the workforce.

“The boomers are relying on social safety net programs, such asSocial Security and Medicare, that were never designed or intendedfor a large contingent of beneficiaries who will probably live 25or 30 years – or more – in retirement,” Niemann said. “Thoseprograms, under their current models, will be unable to pay thebenefits seniors believe they are entitled to.”

Today, there are 30 million fewer people in Generation X than inthe baby boomer generation, which means 30 million fewer peoplepaying into the retirement system for this massive retiringpopulation, he noted.

The Millennial or Gen Y generation is as big as the boomer generation, but theyare far behind their boomer parents in launching their careers,getting married, starting families and buying homes. Niemannsaid.

This is largely because of a massive and still-growing studentdebt burden, which now tops $1 trillion, as well as lacklustereconomic growth since the recession ended five years ago, heexplained.

“Ironically, their ability to pay into the system is also beinghampered by their own parents, who are blocking their children'spath up the economic-ladder because of their own need to continueworking,” Niemann said.

Members need credit unions more today than ever before, but theyjust don't know it, he suggested.

“Most baby boomers don't have a retirement income plan or a planfor funding long-term care. That's where the credit union fits in.Credit unions have a major role to play in educating their membersabout these issues and helping them navigate the new normalenvironment.”

Niemann concluded his session by encouraging credit unions tohelp members, old and young, navigate these changes by starting theconversation.

“Don't wait for members to come to you. Reach out to them. Askmembers to visualize their future, and then help them figure out arealistic retirement plan,” Niemann said. “Credit unions have theknowledge, expertise, and resources to help members navigate thesechanges, but they can't delay. They must start today.”