Engaging Members Through Retirement Products: A Guide for Credit Unions
Given today’s complex financial landscape, planning for retirement is difficult for the average American, and many people in younger generations don’t know where or how to begin. This lack of knowledge poses an opportunity for credit unions to acquire new members by emphasizing their position as a financial wellness partner.
By offering a wide range of useful retirement products and services, credit unions can foster deeper connections, improving engagement, retention, and acquisition all while serving their mission of improving members’ financial lives.
Understanding the Modern Member's Retirement Needs
Soaring healthcare costs, the unpredictability of inflation, increasing life expectancies, and the ever-present concerns about the future of social security have created uncertainty around what retirement will look like in the decades to come. Traditional retirement plans, once deemed sufficient, may no longer align with the evolving needs of the contemporary retiree. This misalignment presents an opportunity for credit unions to help fill the void.
The Value of Engaging Members through Retirement Products
By demystifying retirement planning and bringing clarity to the process, credit unions bolster the confidence of their members in making financial decisions. This, paired with the credit union's evident concern for their members' futures, cements their role as reliable financial allies.
As members progressively build their financial nest egg, they not only secure their own futures but concurrently ensure the credit union's financial health through asset growth and reduced default risks.
Key Retirement Products and Services Credit Unions Can Offer
To effectively cater to members' needs, credit unions can offer a diverse range of retirement products:
Traditional IRAs: These tax-advantaged accounts are staples in retirement planning, offering members a way to save and get tax deductions.
Roth IRAs: While contributions are after-tax, the growth and withdrawals are tax-free, providing another avenue for members to strategize their retirement savings.
SEP IRAs: Tailored for the self-employed or those running small businesses, these allow for larger contributions, adapting to their unique earnings patterns.
Specialized savings accounts: Beyond IRAs, offering savings accounts specifically designed for retirement can be a draw, especially with competitive interest rates.
Annuities: By offering a guaranteed stream of income in the future, annuities can provide members peace of mind.
Retirement investment funds: Catering to varying risk profiles, these funds can help members grow their savings by investing in diverse portfolios.
Retirement planning workshops and seminars: Education can empower members by demystifying retirement planning and providing actionable insights for members.
Digital Integration and Accessibility
In the digital era, the emphasis on convenience and accessibility has never been more critical. Retirement calculators are instrumental in allowing members to envision their savings journey and plan their goals.
As a vast majority of individuals engage primarily on mobile platforms, integrating retirement planning into mobile apps has become vital, ensuring members have the means to oversee and adjust their retirement accounts effortlessly while on the move.
Additionally, webinars and digital workshops serve the tech-savvy demographic, casting a wider net of engagement and offering adaptability in learning. Meanwhile, the integration of chatbots and virtual financial coaches bolsters the user experience by delivering immediate guidance and ensuring assistance is available at any given hour.
Consistent Retirement Planning
Saving for retirement is a continuous process, which can lead to sustained member engagement if your credit union proves itself as a valuable partner. Annual reviews of retirement planning can be an essential touchpoint, facilitating necessary adjustments in line with life's unpredictable turns and evolving financial ambitions.
The path to retirement, with its many twists and turns, can be daunting. But credit unions, armed with the right products, services, and a genuine commitment to member welfare, can make this journey smoother. The white-label Paperwork app helps credit union members plan for retirement through:
Personalized guidance via a chatbot
Secure document storage for crucial retirement information
A dashboard of all financial accounts in one place
For more information about how Paperwork educates members and helps them plan for retirement in a streamlined app, schedule a free consultation today.