Today s Retirement Challenges

Transcription

1 Today s Retirement Challenges An innovative approach to retirement IncomeSolutions 5/14/2009 Kelli Hueler, President Hueler Companies Stephen Ryerson, President UNFCU Financial Advisors, LLC. Hueler Companies and UNFCU Financial Advisors, LLC All rights reserved.

2 Contents 2009 NACUSO Annual Conference 2 Kelli Hueler of Hueler Companies Income Sufficiency The New Retirement Challenge Income Solutions Empowering American Retirees Why Meaningful Competition is Essential? Critical Components of Best Practice Delivery: DOL Testimony Impact of the Combined Effect Steve Ryerson of UNFCU Financial Advisors Today s Retirement Challenges Meeting the Challenge RetirementSolutions

3 Income Sufficiency The New Retirement Challenge 3 Transition away from traditional defined benefit plans Responsibility shifts from employer to individuals Increased life expectancy Shift from focus on accumulation to de-cumulation Need for personal pensionization Impact of market realities Hueler Companies 2009

4 4 Income Solutions Empowering American Retirees Leverage Institutional purchase model Allow individuals to pensionize assets via IRA rollover Require competition, transparency, purchase flexibility Create maximum monthly income benefit. Provide unbiased assistance/advice Hueler Companies 2009

5 Why Meaningful Competition is Essential? 2009 NACUSO Annual Conference 5 On any given day an individual insurance company may or may not quote competitively with its peer group as shown by the chart below Sampling of Income Solutions Quotes ($100,000 Deposit): Quote Range versus Issuer Quotes October September 2008 $750 $700 Quoted Monthly Income $650 $600 $550 $500 Hueler Companies 2009 Income Solutions is a registered trademark of Hueler Investment Services, Inc.

6 Critical Components of Best Practice Delivery: DOL Testimony 6 Diverse Universe of High Quality Issuers Institutional/Group Pricing Meaningful Competition IRA Rollover Option Choice Transparency Comparability Partial Annuitization Option Purchase Flexibility Inflation Protection Options Independence Hueler Companies 2009

7 7 Impact of the Combined Effect Difference of Institutional vs. Retail Pricing as of December 2008 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 10 Yrs 15 Yrs 20 Yrs 25 Yrs 30 Yrs 65 Year Old Male $200,000 Life Only Income Annuity Average Monthly Income Differential = 6.28% Copyright Hueler Investment Services, Inc All Rights Reserved. Income Solutions Hueler Companies 2009

8 8 Today s Retirement Challenges Improvements to healthcare and living standards has lead to an increase in the average life expectancy. People all over the world are living longer, healthier lives. They are also having fewer children. Increased life expectancy and falling fertility rates has lead to an imbalance in the number of retirees dependent upon social security programs and a decrease in the number of working-age people funding them. Unless our government initiates legislative changes and individuals take more responsibility for their retirement income, realizing the true benefits of the golden years could become more difficult to achieve 1. Government reform aside, individuals need access to retirement income solutions from the institutions they trust most. 1 AARP, Financing Retirement: Preparing Today for the Challenges of Tomorrow

9 9 Meeting the Challenge The need for financial institutions to offer comprehensive retirement income planning has never been greater. According to AARP 2, 97% of their members list developing a retirement income plan as one of their most important goals. However, 68% don't believe their existing advisors are experts in this area, and they will need to search for one who is. What are you doing to meet the retirement income needs of your members? As experts in financial and retirement income planning, we ve developed an innovative and comprehensive retirement solutions program to address the financial needs of today s retirees. UNFCU Financial Advisors is proud to introduce RetirementSolutions, a turn-key program that allows financial institutions to provide these services directly to members and employees. 2 AARP, marketing association for people over 50

10 10 RetirementSolutions RetirementSolutions is an innovative program that features products and services specifically designed to help current and future retirees maximize their assets. We re committed to providing valuable and relevant solutions that address today s retirement income challenges. Whether it's helping members with their employer rollovers, creating sustainable income or assisting with real estate transactions, RetirementSolutions helps retirees make the most of their hard earned savings. All programs are overseen and supported by our licensed investment, insurance and real estate advisors or your qualified staff. Give your members access to these same opportunities today!

11 11 Service Offering The RetirementSolutions Program features a select group of products and services chosen to deliver the greatest consumer value and meet our high standards. The following services are available to clients and partners of UNFCU Financial Advisors: IRA Rollovers Income Solutions WelcomeHomeProgram Coming Soon

12 12 IRA Rollovers A Great Start For Retirement Income Planning Retirees are faced with many important financial decisions. One of the most critical involves deciding what to do with their retirement accounts at work. This process can seem daunting and downright confusing. Additionally, members can accumulate accounts at various financial institutions, or leave money behind with a previous employer. These issues represent a significant opportunity for your financial institution. Become the trusted resource for employer rollover distribution and consolidation and you ll increase IRA deposit balances while putting member in a great position to start their retirement income planning. Member Benefits Creates a foundation for retirement income planning Credit Union Benefits Increase IRA deposit balances Increase assets under management Become the At Retirement Resource

13 13 Income Solutions A Paycheck for Life! The perfect solution for retirees who are concerned about outliving their assets or want to ensure they ll have sufficient income for the duration of their retirement. Income Solutions is a lifetime income program that allows members to convert (annuitize) a portion of their 401k, IRA or other Qualified Plan account into a monthly paycheck for life. This simple process involves an immediate annuity, which provides guaranteed income for life. Traditional retail annuities have higher commissions and fees than Income Solutions annuities. Discounted group pricing and reduced internal costs and savings are passed on to members in the form of higher monthly income. Member Benefits Higher monthly income Discounted Group Pricing Competitive quotes from up to 10 Carriers Accessible through a financial advisor OR online. Credit Union Benefits Generate Fee Income Easy Integration Co-branding Opportunity Become the At Retirement Resource

14 14 Retire Your Real Estate Concerns WelcomeHomeProgram is a multi-faceted, national service that offers assistance with buying, selling and financing real estate as well as relocation and rental services and resources. For the retiree, this program will save time and money and insure a smooth transition. WelcomeHomeProgram is a FREE service that offers many benefits. Personal Real Estate consultants evaluate needs and wants while guiding members through the process of buying or selling. members receive recommendations on trusted real estate agents from national brokers as well as information about communities and quality of life in the areas that their considering. Once a member closes on a home, they'll receive cash-back (up to $2,400!) based on the sale or purchase price the home simply for using a recommended agent. Member Benefits FREE Save time & money Work with trusted agents Cash back bonus Discounts Convenience Credit Union Benefits Generate Fee Income Increase Mortgage Sales No Start-up Cost and Easy Integration Co-branding Opportunity Become the At Retirement Resource

15 15 Resources In addition to the innovative products and services, RetirementSolutions offers resources such as: Links to helpful government agencies, healthcare and non-profit organizations Budget worksheets Essential forms and paperwork check lists to help retirees stay organized and prepared Easy access to qualified financial advisors And more!

16 16 Eligibility The products and services offered in the RetirementSolutions Platform are exclusive and available to UNFCU Financial Advisors partner s members and employees.

17 17 Features & Benefits Offers your members innovative products and services they cannot get anywhere else while generating fee income for your financial institution. Increases IRA deposit balances and helps members plan their retirement income Establish your financial institution as the At-Retirement resource for members and prospective members Offer members a FREE, convenient and professional real estate resource that will save them time and money Enhance membership value and increase loyalty by offering members and employees access to these new products and services Programs and services are accessible through an advisor or online Easily integrates into your existing service offering. Adopt the complete RetirementSolutions platform or select individual programs In addition to access and flexibility, partners can take advantage of co-branding opportunities and turn-key marketing solutions

18 18 Contact Us Kelli Hueler, President Hueler Companies, Inc. (952) Stephen Ryerson, President UNFCU Financial Advisors, LLC (347)