Risk management, diversification and products with guaranteeshave proven to be tried and true approaches when it comes to whatfinancial advisers suggest to members and credit unionemployees.

Programs that educate members on retirement planning continue tobe pivotal when many have postponed their plans. In 1999, 17.2million American workers were age 55 or older. By mid-2009, thatnumber had increased to 27.1 million, according to data compiled byCUNA Mutual Group's 2010 retirement plan forum newsletter. Withthis aging of the U.S. work force, credit unions are being urged toensure that their retirement education programs meet the needs ofpreretirees as well as those of younger employees.

“Diversification still matters especially for members' long-termgrowth needs,” said David Foster, vice president of productdistribution at CUNA Mutual “If we continue to have a joblessrecovery, other economies have the potential to grow faster thanours.”

In 2008 and 2009, Foster said advisers saw more activity inhelping members assess their risk management to their time horizontoward retirement. Those with a 529 plan for college who are alsofacing retirement in the next three to five years may need torethink if their assets need shifting. The conversation certainlytakes on a different tone depending on the member or CU employee'sage.

CUNA Mutual said most retirement education materials focus onencouraging employees to enroll in the company's plan andcontribute as much as they can to their plan accounts.Communications concentrate on plan basics such as how the planworks, the advantages of pretax contributions, tax-deferredcompounding, starting early, contributing regularly and how toinvest plan contributions to reach retirement goals. As employeesmove closer to retirement age, they need additional informationabout their plan distribution options and how to invest theiraccounts to preserve their assets.

Foster said advisers are adding guarantees either throughcertificates of deposits, stable value accounts in 401(k) plans andfixed annuities. Members looking at retirement may considerimmediate annuities or variable annuities. CUNA Mutual had recordannuity sales in 2009 because of the guarantee feature, he pointedout.

Older employees and members are advised to review their assetallocations periodically as they move closer to retirement and insome cases, gradually shift some of their growth investments intomore conservative investments to help preserve their savings,according to CUNA Mutual. The impact inflation can have onretirement expenses and the resulting need to keep some growthinvestments to stay ahead of inflation is another important topicfor both preretirees and retirees.

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