A growing number of members in the baby boomer age range are leaving their credit unions as they near retirement, according to research conducted by CUNA Mutual Group.
In a multilayered study of credit union members and nonmembers between the ages of 50 and 67 with various income levels, CUNA Mutual found that somewhere between 17% and 88% of boomer members are at risk of leaving their credit unions in retirement. In the report, “Boomers or Bust-A Generation You Can’t Afford to Lose,” authored by Jeff Hunt and Vicky Franchino, members said the top reasons for leaving the credit union were the financial institutions were not where they conducted most of their transactions and most of their investments and assets were parked elsewhere.
Retaining a boomer membership is a critical goal for all credit unions given their asset power, according to the report. To do this effectively, credit unions have to reposition themselves as full-service retirement partners.
“Boomer members will be increasingly responsible for their financial survival during retirement and will need new reasons to remain with their credit unions: The loans and deposit accounts they used in the past will not be enough to keep them.”