Jess Noelck
608.665.7861
jess.noelck@cunamutual.com
Rick Uhlmann
608.665.8940
rick.uhlmann@cunamutual.com
CUNA Mutual Group Speaker Urges Maine Credit Union League Management Roundtable Attendees to Educate Members
ROCKPORT, Maine – Credit unions have the opportunity and obligation to educate members about the “new normal” economy and what it means for their retirement plans, attendees of the Maine Credit Union League Management Roundtable were told Wednesday.
Hendrix Niemann, managing director, practice and wealth management services at CUNA Brokerage Services, Inc., engaged meeting attendees in a conversation about the “new normal” economy and its impacts on retirement.
“Who is going to tell credit union members that retirement has changed?” Niemann asked attendees. “Credit unions have the responsibility to provide financial education to their members. This means credit unions have both an opportunity and an obligation to fulfill.”
Niemann told attendees that, according to Bank Investment Consultant magazine (Sept. 5, 2012), 40 percent of Baby Boomers had less than $100,000 saved for retirement; 22 percent have nothing saved for retirement; and almost half have never even tried to figure out how much money they will need to maintain their lifestyle in retirement. Niemann indicated that these members really need help from their credit unions.
“In 1935, life expectancy was age 60. Today, retirement plans are calculated based on a possible life expectancy of age 90 for men and age 92 for women,” Niemann explained. “This means people are living much longer on their retirement savings than previous generations and, therefore, need our help to plan.”
Niemann added that retiring at age 60 or 62 is probably out of the question for most retirees if they want to maintain their current lifestyle for 25 to 30 years, unless they retiree with significant assets. Today, the prudent “new normal” retirement age is probably 67 or 70, and members usually don’t realize that they may need to keep working longer than they would like to, Niemann told attendees.
“Get out in front of members.” Niemann advised. “Banks aren’t out there educating their customers. You have a tremendous opportunity, seize it,” Niemann urged. He recommends credit unions undertake an extensive program of member education to help members understand and navigate the “new normal” economy.
Member education should include educating members about interest rates, investing options, insurance options, future economic trends and providing adequately for health care costs throughout their retirement, Niemann said. It also should include making sure members are fully informed about issues such as Social Security, Medicare, tax planning, estate planning and retirement income planning, Niemann added.
Niemann reminded credit union leaders the “new normal” impacts them, too. Credit unions and their members must assume lower rates of return, lower interest rates and sluggish economic growth for the foreseeable future, which means both credit unions and members need to be diversifying their sources of income.
“Many credit union members are still too highly leveraged, so they won’t be borrowing as much or at all,” Niemann said. “This means you need to find other sources of income, such as fee income from investments, to compensate for lower revenue from traditional activities such as lending.”
CUNA Brokerage Services, Inc. utilizes face-to-face financial advisors to help credit unions meet member retirement, investment and insurance needs. Working onsite at credit unions, CBSI financial advisors provide members with comprehensive financial services from simple transactions to complex financial planning and wealth management services.
CUNA Brokerage Services, Inc. provides broker-dealer services to credit unions throughout the nation, offering a full range of investment products, variable and fixed annuities, insurance products, and professional services related to securities transactions, financial planning and wealth management. CBSI is the largest broker-dealer in the United States that focuses exclusively on the investment and insurance needs of credit unions and their members.
CUNA Mutual Group insurance, retirement and investment products provide financial security and protection to credit unions and their members worldwide. With more than 75 years of true market commitment, CUNA Mutual Group’s vision is unwavering: To be a trusted business partner who delivers service excellence through customer-focused products and market-driven insight. More information on the company is available on the company’s website at www.cunamutual.com.
CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates. Life, accident, health and annuity insurance products are issued by CMFG Life Insurance Company. Property and casualty insurance products are issued by CUMIS Insurance Society, Inc. Each insurer is solely responsible for the financial obligations under the policies and contracts it issues. Corporate headquarters are located in Madison, Wis.