Younger Members Fear for the Retirement Years
A recent survey from the American Savings Educational Council indicates that while younger workers (Generations X and Y) are saving for retirement, they live in double-edged fear that what they are saving isn’t enough and that government-managed benefits like Social Security will be slashed (or ended) by the time they retire.
Most credit unions offer a portfolio of retirement planning products. These often include mainstays like:
- Savings Accounts
- Money Market Accounts
- Certificates of Deposit (CDs)
- Traditional IRAs
- Roth IRAs
- Coverdell Education Savings Accounts (CESAs)
However, a growing number of credit unions are heeding the fears of younger members and now offer not just retirement products but retirement training and education. It can (and probably should) start with youth savings accounts, where credit union help teach children about the importance of putting some away for a rainy day. While this is a great start, it’s more than likely not enough to both adequately address the retirement savings education gap and assuage X and Y fears about those years.
The NCUA also offers a handy savings and retirement calculator on their consumer website.
Generations X and Y have keen intellects and care deeply about their futures, financial and otherwise. Credit unions are wise to acknowledge this and do more to help these young members bridge the retirement savings information gap.Article by Mark Arnold, president of On the Mark Strategies