For more information:
Maripat Blankenheim 608/232-6539 maripat.blankenheim@cunamutual.com
Rick Uhlmann 608/231-8940 rick.uhlmann@cunamutual.com
 
March 19, 2008
 
Aging Boomer Market Poses Challenges for Credit Unions
CUNA Mutual Offers Retiree Strategies at Big Valley Educational Conference
 
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 annual Big Valley Educational Conference today, boomer business is worth attracting and retaining.
 
Heather Thiltgen, vice president of Consumer Segment Programs at CUNA Mutual Group, told attendees baby boomers are influential – 78.2 million strong as the largest generation in U.S. history; rich - $46 trillion in assets, $17 trillion in investable assets, $3 trillion in spending power, $750 billion in discretionary income and $489 billion in annual IRA rollover dollars; and profitable – boomers will continue to freely borrow and spend throughout retirement.
 
“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
• 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 
• Providing ways for them to finance their desire to stay young, such as home gyms, plastic surgery, dental procedures and travel 
• Partnering with them to improve the planet through increased green messaging, more volunteer programs and working to emphasize collaborative roots and shared values 
• 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 emphasized 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 or 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.
 
According to the California-Nevada Credit Union League, the Big Valley Educational Conference offered League members “detailed and highly applicable information about critical credit union issues such as broadening your markets, cutting costs, generating revenue, reaching the younger generation, and more.”
 
CUNA Mutual Group is a leading provider of financial services to cooperatives, credit unions, their members and valued customers worldwide. With more than 70 years of market commitment, CUNA Mutual’s vision is unwavering: to be a trusted business partner who delivers service excellence and customer-focused, best-in-class products and market-driven innovation. More information on the company is available on the company’s Web site at www.cunamutual.com.