MADISON, Wis.-A new study suggests that longer stays in college are leading younger credit union members to take longer to make major purchases, which in turn is delaying subsequent life events.
The study, commissioned by TruStage, the consumer face of CUNA Mutual Group, has significant implications for credit unions, which have gotten deeper into the private student lending market in recent years, closing 2012 with more than $2 billion in combined student debt at year-end 2012.
The study found that consumers age 18-44 have underestimated the amount of time it would take to graduate from college.
"The survey uncovered that this age group is actually attending college at least one full semester longer than they had planned," said Alan Bergstron, brand and creative services director at TruStage. "As a result, the big moments we usually associate with post-graduation-the car buying, weddings and home-buying-are delayed."
Young, Yet Slower To Act
The study also noted that younger consumers, while more tech savvy than older generations, take an average of 18 days longer to shop for a car than consumers age 45-54.
At the other end of the age spectrum, retirement is happening later. For those planning to leave the workforce, the expected retirement age is 64 years old. For those who have already retired, the average age when leaving the workforce was 59 years old.
On the other hand, retirement planning appears to be starting earlier, as the survey found that 71% of respondents age 18-34 are beginning to save for retirement at age 24, on average.
"This presents an opportunity, as our surveys indicated this generation considers credit unions to be one of several 'trusted sources' for help in planning retirement," said Bergstrom.
