Ten percent of customers are actively looking for a change across financial institutions. While service is the top issue among retirees, asset aggregation is the primary goal of pre-retirees.

Boston, MA, November 19, 2007 – A new report from Aite Group, LLC examines the similarities and differences between people nearing retirement and those that have already retired, and provides insights to help financial services firms capture and retain each group's investment dollars.

According to the report, for which Aite group surveyed 505 people in the United States, who were either within five years of retiring or within five years of having retired, on their investment preferences, financial institution relationships, and channel usage, 10% of customers are looking for a change across financial institutions. This creates tremendous risk and opportunity for banks and brokerage firms alike, as nearly two-thirds of near-retirees and almost half of post-retirees have net assets under management of more than US$100,000, making it a lucrative consumer segment for financial institutions. Currently, community banks lead the pack in holding relationships with both retirees and pre-retirees, while brokerage firms are making progress coaxing pre-retirees away from local institutions. To remain competitive, both banks and brokerage firms would do well to continue investing in relationship-building activities. The report compares multichannel activities between pre-retirees and retirees in six channels: branch personnel, call centers, financial advisors, e-mail, Interactive Voice Response (IVR), and Web sites.

"While there are many similarities between people who are nearing retirement and those who are on the other side of it, there are also some subtle differences between each group," says Adam Honoré, senior analyst with Aite Group and author of this report. "As firms refine their service models to capture and retain this demographic sweet spot, they will do well to recognize each."

This 43-page Impact Report contains 42 Figures and 6 Tables. Clients of Aite Group's Retail Securities & Investments service can download the report by clicking on the icon to the right.

Related Aite Group Research:

• Holistic Wealth Management: The Data Consolidation Challenge
• Mass-Affluent Online Customer Needs in a Retirement Age
• What Really Matters to Retail Consumers of Online Brokerage?

To purchase this report or
for additional information,
please contact:
Aite Group Sales
Tel: +1.617.338.6050
sales@aitegroup.com