Growing investments means embracing Gen X and Gen Y now
A tremendous amount of wealth is going to change hands through inheritance in the next 10 years, and the indicators are not good that credit unions will retain this wealth unless they start actively engaging Generation X and Generation Y now, attendees of CUNA Brokerage Service, Inc.’s (CBSI) FOCUS Conference were recently told.
David Polet, CUNA Mutual Group’s voice of customer director, and Gary Weuve, CBSI’s Center for Advisor Excellence vice president and author of “Close More Sales in Financial Institutions: 12 Keys to Success,” told a FOCUS advisor workshop session that credit unions have been steadily losing younger people, so the pipeline for their future personal investments is getting smaller while the competition for their money is greater.
“Research shows 71 percent of 18-24 year olds have little to no knowledge of credit unions,” said Polet, “and that’s a problem because this generation will be critically important to the future of your credit union in the years to come.”
Thirty-trillion dollars will be transferred to Gen X and Gen Y from Baby Boomers during the next 30 to 40 years, making it an even larger wealth transfer than prior generations, according to Accenture’s “The ‘Great’ Wealth Transfer” 2012 white paper.
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