Jan 15 2015

Baby Boomers & Retirement Planning: Recent Trends and Future Implications for Credit Unions

Report  
Number  
354

The baby boomer generation is made up of more than 75 million Americans born between 1946 and 1964. As this age gets closer to retirement age, credit unions are in a position to attract new members and continue to serve their long-term members. 

Ben Rogers
Managing Director, Research
Manpreet Nat
Research Associate
Filene Research Institute
Report Number 354

Executive Summary

Approximately 8,000 members of the baby boomer generation will turn 65 every day over the next few decades. Credit unions can and should target wealthy households with asset management services, to increase their footprint in the boomer market and to increase the share of their assets in credit union-related products.

What is the research about?

This report presents data on consumer over the age of 65 and their:

  • Planning for retirement.
  • Financial institution use preferences.
  • Reasons for shifting holdings.
  • Confidence in retirement planning.

What are the credit union implications?

Many baby boomers are likely to need services beyond loans and deposits, which include retirement planning, asset management, financial advice, etc. which few credit unions may provide directly Credit Unions need to focus on:

  • Living trusts
  • Reverse mortgages
  • Individualized attention
  • Contribution accounts
  • Minimizing high fee products