The level of savings that middle-class Hispanics have accumulated suggests that many individuals in this market segment have made a good start toward their future retirement security
Newark, NJ (PRWEB) May 7, 2008
Today, Prudential Financial, Inc. (NYSE:PRU) released a new survey on the financial attitudes and behaviors of Hispanic Americans. According to the Hispanic Americans on the Road to Retirement research report, retirement is very much on the radar of middle-class Hispanic Americans - a vast majority of whom have taken steps to provide for their futures.
Nearly all of those surveyed (90%) acknowledge that retirement security is an important goal, and two-thirds (64%) have savings earmarked for retirement. Not only are 81% of households with an annual income greater than $50,000 putting aside money for retirement, but 45% of that group have already saved $100,000 or more toward their golden years. The survey also found that most of those polled are willing to defer retirement to gain greater financial security.
"The level of savings that middle-class Hispanics have accumulated suggests that many individuals in this market segment have made a good start toward their future retirement security," said Bernard Winograd, executive vice president, U.S. Businesses, Prudential Financial.
Hispanics in the U.S. attach high importance to goals such as not outliving their savings and having enough money to maintain their lifestyle. However, the survey showed gaps of 30 and 24 percentage points, respectively, between the importance of these goals and the confidence that they can be achieved. Additionally, retirement planning, savings, and confidence are strongly influenced by relationships with a trusted financial advisor.
In 2007, Prudential commissioned the study of 503 middle-class Hispanic Americans to better understand the retirement preparation, practices, and concerns among the 5 million-plus Hispanics age 25 to 65 earning a household income of more than $35,000 annually . Hispanics are America's largest and fastest growing market segment, accounting for more than half of the total growth in the U.S. each year. At an average age of 47, respondents overall have many years remaining to save for retirement. Yet, despite substantial earnings, assets, and time horizon, the retirement interests of Hispanic Americans have received relatively little attention.
Key findings of the study included:
Hispanic Americans aspire to a successful and grounded retirement.
The majority (90%) acknowledges retirement security as an important goal. Eight in 10 are seeking to be "comfortable" or at least "independent" in retirement; two in 10 hope for a more "upscale" retirement.
Two-thirds of Hispanic Americans are saving for retirement.
Of those surveyed, 64% have some kind of retirement savings. More than half (54%) are saving through a workplace retirement plan, and over a third of "savers" have reached $100,000 in retirement savings.
Eight in 10 believe a successful retirement depends on careful planning, yet two-thirds lack a formal financial plan, or the help of a financial advisor.
While only one in three reported having a financial advisor, those with a professional advisor relationship are nearly four times as likely to have a formal financial plan. Those working with an advisor also have higher tendencies to contribute toward some kind of retirement savings account (85% vs. 54%).
"Financial services companies have a unique opportunity to address the growth trends and emerging affluence of the Hispanic market. By providing the right products, tools, and professional financial guidance, we can help all Americans maximize their retirement savings as well as generate a paycheck for life," said Winograd.
The full Hispanic Americans on the Road to Retirement research report is available online at the Prudential Online Newsroom at http://www.news.prudential.com.
Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $631 billion of assets under management as of March 31, 2008, has operations in the United States, Asia, Europe, and Latin America. Leveraging its heritage of life insurance and asset management expertise, Prudential is focused on helping more than 50 million individual and institutional customers grow and protect their wealth. The company's well-known Rock symbol is an icon of strength, stability, expertise and innovation that has stood the test of time. Prudential's businesses offer a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. For more information, please visit Prudential.