MONTEREY, Calif. -- As the baby boomers inch their way into retirement, credit unions are faced with the prospect of the most influential demographic needing retirement products as well as the challenge of how to attract their business.

Based on statistics provided to the California-Nevada Credit Union League at its recent Big Valley Educational Conference, boomer business is worth attracting and retaining.

Heather Thiltgen, vice president of consumer segment programs at CUNA Mutual Group, told attendees that baby boomers--who number 78.2 million Americans--are influential and the largest generation in U.S. history. They're also rich, with $46 trillion in assets, $17 trillion in investable assets, $3 trillion in spending power, $750 billion in discretionary income and $489 billion in annual individual retirement account rollover dollars. And, they're profitable: Boomers will continue to freely borrow and spend throughout retirement, Thiltgen said.

"To determine how to approach this consumer segment, it's important to know how they think, what drives them to make decisions," said Thiltgen. "Knowing their characteristics will help us develop a successful strategy."

Based on her research, Thiltgen reported that baby boomers favor simple, customized options; are interested in staying young, healthy and active; list improving their community and the world as top concerns; believe experience and convenience are more important than price; remain focused on their families, especially grandchildren; and are optimistic about the future.

With that as her premise, Thiltgen suggested several strategies to attract and retain the baby boomer business, including building simple financial products that can be customized to a variety of needs and circumstances. Helping them save for sickness, based on their anticipated higher life expectancy, and providing ways for them to finance their desire to stay young, such as home gyms, plastic surgery, dental procedures and travel, are other ways to woo boomers.

Boomers tend to be environment friendly, Thiltgen said. Partnering with them to improve the planet through increased green messaging, more volunteer programs and working to emphasize collaborative roots and shared values is another way to appeal to boomers, as is helping their families by providing education savings accounts, home equity loans and credit monitoring

"There are dozens of ways to provide enhanced products and services to baby boomers," said Thiltgen. "Customizing those products to meet their needs while respecting their active lifestyles will help attract their business."

Joining Thiltgen in her presentation was Sherry Reams, vice president of investment and insurance services at Financial Partners Credit Union, who spoke on her credit union's mission of building lifetime financial partners.

"We want to be trusted advisors for the long term, not just product pushers or single-service providers," said Reams, whose credit union serves people who live or work in Orange and Los Angeles counties. "Our aging membership, as well as the aging country, requires us to shift our program emphasis."

Reams said providing complementary retirement road tests, establishing retirement centers in branches and placing greater emphasis on retirement services in marketing materials are just some of the ways FPCU is addressing the baby boomer market.

--msamaad@cutimes.com

Instant Insights /

Aging Baby Boomer Market Ripe for Credit Union Attraction, Retention Prospects

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