MONTEREY, Calif. - The terms “Baby Boomer” and “retirement” are difficult for many credit unions to use in the same sentence. And that only makes the challenge of marketing retirement products to the retiring demographic even tougher, according to two analysts.
Heather Thiltgen, VP-Consumer Segment Programs at CUNA Mutual Group, told attendees at the California/Nevada leagues’ Big Valley Conference that the 78.2-million member Baby Boom generation represents $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. Moreover, the Boomers will continue to freely borrow and spend throughout retirement, according to Thiltgen.
“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.”
According to Thiltgen, 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.”
