Presentation is loading. Please wait.

Presentation is loading. Please wait.

Secrets of the Boomers Revealed CUNA Mutual’s 2009 Boomer Retiree Retention Study Jeffrey Hunt, CFP® June 22 nd, 2009.

Similar presentations


Presentation on theme: "Secrets of the Boomers Revealed CUNA Mutual’s 2009 Boomer Retiree Retention Study Jeffrey Hunt, CFP® June 22 nd, 2009."— Presentation transcript:

1 Secrets of the Boomers Revealed CUNA Mutual’s 2009 Boomer Retiree Retention Study Jeffrey Hunt, CFP® June 22 nd, 2009

2 Crisis

3 Credit Union Penetration U.S. Adults – Membership by Age CUNA National Member Survey 2008 Members Historically Leave in Retirement Replaced by new, younger borrowers

4 A New Generational Reality Too small - Too poor - Too late

5 About Our Study Tom

6 Boomer Members Also Intend to Leave Very likely to stop using Somewhat Likely to Stop Using Not likely to stop using 17% fewer Members 5.6M Members = $617B in net worth

7 Why They Will Leave - Next 5 Years Membership is only available through my current employer It is not where I conduct most of my transactions Not where I have most of my assets, investments and savings They are not convenient to use It is not where I receive financial guidance and advice Don’t offer wide enough range of financial products and services They do not offer good prices or rates They are not easy to deal with They do not provide friendly customer service I do not trust them It is not where I have my insurance Fewer planned transactions/spending/purchases Moving out of area/out of state Daily relevance – Overall competitiveness

8 What About the Other 83%? Very likely to stop using Somewhat Likely to Stop Using Not likely to stop using Five reasons they’ll leave over time Focus Group’s loyalty tenuous

9 Jean’s moving her money Reason to Leave #1

10 Reason to Leave #1: Consolidation Have not consolidated yet Have consolidated Financial Advisor/Planner 28% 21% 19% 10% 9% 8% 5% Credit Union Mutual Fund Company Brokerage Firm Bank / Savings & Loan Don't Know Other Simplify lives with someone else

11 Reason to Leave #2: Retirement Needs Old needs intensify - New needs appear

12 Very Likely to Start Using Somewhat Likely to Start Using Reason to Leave #3: New Relationships/Offers Excited by new services

13 Richard’s relationships Reason to Leave #4:

14 Reason to Leave #4: Existing Relationships Already with the competition

15 Members on their PFI Reason to Leave #5:

16 Reason to Leave #5: Strongest Relationships 59% other PFI Most think of someone else first

17 Summary: How Much of Your Membership is Safe 83% 41% 12% Pct. who only use a CU Pct. considering CU as PFI. Members intent on staying Few faithful to credit unions

18 Understand Them and Win

19 Members Optimistic About Their Financial Abilities % Top 2 Box: 90% 86% 72%, 70% 63% 92% I have a positive self-image I am in control of my life I am in control of my finances I don't live depend on the next paycheck I manage my money well and expect good results I enjoy reading about finances and ways to better manage my money Boomers will pay to remain positive

20 Understanding Dennis and Linda’s Concerns Biggest Concerns

21 36.5% 24.3% 18.3% 7.7% 6.1% 1.0% 2.2% 3.9% Economic situation Health Government Funds for retirement Expenses Employment Other None / Don't Know They seek health care and retirement income

22 Understanding Tom’s retirement readiness Specific Worries

23 Unprepared for future health care – 64% Lower standard of living – 44% Unprepared for retirement – 54% Poor health will effect retirement income – 54% Long-term financial insecurity – 55% Leave their home during retirement – 88% Manage retirement savings by myself – 66% Need retirement experts to prepare them

24 Shari and Jean want more retirement options What They Want From PFI

25 Loans so that I can keep borrowing, if necessary Options for health insurance coverage until I’m eligible for Medicare Products/advice to help ensure I can cover the costs of prescription drugs in retirement Advisors to help me understand my retirement health care options Information to help me understand my options under Medicare Insurance to protect me and the things I own Products/services that allow me balance my needs with leaving something for my heirs Products/advice to help ensure I can finance health care in retirement Ways to supplement my retirement income Someone to help me keep my retirement on track A range of investments from guaranteed to aggressive Options for me to roll-over and combine my retirement savings A place for me to simplify my finances and deal with fewer institutions Income-generating investments that I don’t have to manage all the time Someone who can give me retirement answers in language I understand The variety of financial products that meets all of my needs Someone who focuses on providing me with advice rather than on just selling to me Products and services that leave me in control of my financial decisions % Top 2 Box With retirement products and advice

26 Four Factors to Increase Purchases Simplicity Value Products Advice Boomer Needs New business model

27 Offer Lower Price or Discount Would be much more likely to purchase from CU Would be a little more likely to purchase from CU Would not make a difference Price - Benefit Value

28 Would be much more likely to purchase from CU Would be a little more likely to purchase from CU Would not make a difference Pre-shopped, Easy to buy Simplicity Convenience sells

29 Jean really wants advice Advice

30 Free Advice - Standing by Advice Would be much more likely to purchase from CU Would be a little more likely to purchase from CU Would not make a difference Help on their terms

31 Member Awareness of CU Offers Product Savings - Loans

32 What has changed with Al Product

33 Interest in Buying % Top 2 Box Product 12% 27% 30% 36% 41% 42% 49% 50% 55% 56% 60% 62% 81% Reverse Mortgage Mortgage Home equity loan/line of credit Life Insurance Annuity Consumer Loans Medicare Advantage Medicare Supplemental Insurance Long-Term Care Insurance Medicare Part D Auto/Homeowners Insurance Health Insurance IRA or Roth IRA Stocks, Bonds, Mutual Funds CDs, Money Market, and Savings Accounts Income – Insurance - Loans

34 Members want help with care

35 Interested in Buying from their Credit Union Product % Somewhat/Very Likely 52% 38% 34% 32% 30% 28% 26% 24% 23% 16% 12% 55%CDs, Money Market, and Savings Consumer Loans IRA or Roth IRA Stocks, Bonds, Mutual Funds Home equity loan/line of credit Medicare Part D Auto/Homeowners Insurance Medicare Supplemental Insurance Medicare Advantage Long-Term Care Insurance Annuities Mortgage Health Insurance Life Insurance Reverse Mortgage Current products – New products

36 Strategy Strategy Evolve Into Retiree Companies: A Six Step Program

37 Richard and Linda would take a look Tom and Shari want retirement packages

38 % Somewhat/Very Likely Step 1: Create an Endorsed Retiree Product Portfolio Let them buy

39 30% 11% Total Not Effective at All Not Very Effective Step 2: Talk Retirement and Never Stop Let them know

40 Richard can’t remember any…

41 Step 3: Build Awareness In Each Channel Insert in monthly statement Send brochure through mail , with a link to their website Brochures at the branch An “open house” at the credit union Seminar at the credit union local branch Announcement on credit union website Advertisement in the newspaper Credit Union representative at work Advertisement on the radio Phone call from my credit union Phone By Mail Internet In-Person Create retirement space in ever channel

42 Step 4: Build Retirement Research Centers In Branch and Online Phone By MailInternetIn-Person 58% 52% 55% 51% 38% 41% 36% 21% 23% 25% 10% 8% 15% Loans Savings Investments Insurance In the branch and on the web

43 Step 5: Build Purchase Channels Phone By MailInternetIn-Person Integrate Channels

44 Members want a trusted advisor.

45 Step 6: Make the Credit Union Their Retirement Advisor Financial Planner/Advisor The Internet Financial magazines Accountant/tax preparer Bank advisor/representative Retirement planning presentations/seminars Specific financial websites Books about financial planning Broker Credit Union advisor/ representative General money management seminars Friends/Relatives Newspaper articles My employer Famous advisors TV programs Think of all the ways you can answer their questions

46 Visit us at booth #209 Meet our Boomer and Gen Y experts Sign in to get exclusive research on Boomer retirees Find out how to offer our new Medicare suite to your members


Download ppt "Secrets of the Boomers Revealed CUNA Mutual’s 2009 Boomer Retiree Retention Study Jeffrey Hunt, CFP® June 22 nd, 2009."

Similar presentations


Ads by Google