MOLINE, Ill.-Deere Employees Credit Union has discovered that gaming is not just for kids. In fact, members of all ages are having fun engaging with interactive web and tablet retirement planning applications.
Deere Employees CU offers members Retirement Radar, an interactive program that allows members to input their own ideas of their retirement needs and helps them identify the risks to meeting their retirement income goals, such as age, gender, assets, longevity, risk and legacy. "Members seem to enjoy the graphics and sound effects with the program," said Judy Ebert, a financial advisor employed by Deere Employees Credit Union. "It is very easy to enter information and interesting to watch the movement of the graphics in relation to member specific input as it identifies the potential guaranteed income need and presents a solution.
"The program is accessible through the web or as a download to an iPad. Using the IPad, for example, is an easy, hands-on approach to involve the member," continued Ebert. "I have also used the web-based version, which works very well, because I have an extra computer monitor facing the member. The member can easily follow along and provide the input, see the program work and receive a printout of the results."
CUNA Mutual Group developed the Software as a Service (SaaS) application, which marks the first time CUNA Mutual has used gamification principles and model-view-controller (MVC) ASP.Net architecture.
"This platform was selected for its rapid development and testing capabilities," said Mike Smith, a retirement and investment specialist in the Retirement Investment Solutions Center (RISC) of CUNA Mutual Group. "MVC architecture also separates application layers in such a way that can be re-used to create future applications can be done more quickly."
The $514-million Deere Employees CU has 20 branches in John Deere facilities and 76 employees supporting 28,000 members. While logic would seem to dictate that the application would be more popular among a younger demographic, Ebert said she is surprised by adoption rates.
"Typically members 70-plus are among those less familiar with an iPad and sometimes are reluctant to participate. This age group is usually looking for an income solution for a low-interest CD," said Ebert. "Members who are 55-to-70 are still working or just recently retired and are more comfortable with the technology."
A Value-Added Benefit
Members in their 30s and 40s are typically more concerned with accumulating retirement income, and the majority of members using Retirement Radar are focused squarely on retirement planning. Ebert explained the program is intuitive and little training is required. The application, she noted, is more of a progressive "value-add" service for financial planners that allows members to visually view their financial future.
Smith recalled that he recently prepared a financial plan for a couple nearing retirement. They had done an admirable job accumulating assets with generated income from sizeable qualified and non-qualified savings accounts.
"Through Retirement Radar we discovered it would take only a small portion of their assets to guarantee enough income to provide the members the confidence level they desired heading into retirement," said Smith. "The tool was invaluable for me in demonstrating this concept to the client and I'm confident they will move forward with strategy as their retirement date quickly approaches."
The Recession's Effects
While retirees or soon to be retirees have always been concerned about financial security in their golden years, the Great Recession has elevated trepidations. Deere Employees CU members are fortunate in that they have pension income along with Social Security; however, they will likely need to access their retirement savings to maintain their desired retirement lifestyle.
"Low interest rates earned on traditional savings, money market and CDs prevent reliance on living off the interest," noted Ebert. "Because of volatile markets and low interest rates, combined with potential longer life expectancy and good health, members are concerned about outliving their retirement savings."
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