The majority of Americans who identify as people of color believe they will not have enough saved for retirement, Allianz Life Insurance Co. of North America reported Monday. This includes 52% of Black Americans, 56% of Hispanics and 62% of Asian Americans.
This level of concern compares with 56% of white respondents and varies significantly among ethnicities.
Allianz Life said these findings, along with perceived barriers to working with financial professionals, confirm the complexity of retirement planning for people of color and the nuanced approach necessary to help members of each ethnic group achieve their financial goals.
In terms of the various risks that can derail a retirement strategy for people of color, top concerns are consistent, yet Black respondents tend to be less worried across the board, Asian Americans the most worried and Hispanic respondents falling somewhere in the middle.
Following are the top retirement risks each group of respondents is most worried about:
- Unaffordable health care costs: Black/African American, 55%; Hispanic, 66%; Asian/Asian American, 76%
- Rising cost of living prevents enjoying retirement: Black/African American, 54%; Hispanic, 67%; Asian/Asian American, 74%
- Rising cost of living makes necessities unaffordable: Black/African American, 55%; Hispanic, 63%; Asian/Asian American, 70%
- Unable to care for oneself: Black/African American, 47%; Hispanic, 60%; Asian/Asian American, 69%
- Running out of money before death: Black/African American, 50%; Hispanic, 64%; Asian/Asian American, 65%
- A market downturn will hurt one's nest egg: Black/African American, 52%; Hispanic, 60%; Asian/Asian American, 66%
- Becoming a financial burden to loved ones: Black/African American, 37%; Hispanic, 52%; Asian/Asian American, 55%
"While it's logical to assume that different ethnic groups have different priorities when planning for retirement, it's eye-opening to see just how varied the level of their concerns are and how that perspective likely affects their approach to spending and saving," Travis Walker, an advisor specialist at Allianz Life, said in a statement.
"It's important for the financial services industry to recognize these unique differences, because they illustrate why financial professionals should consider cultural dynamics" when helping people of color plan for the future.
Allianz Life conducted the 2021 Retirement Risk Readiness Study online in December among a nationally representative sample of 1,000 individuals in the U.S., 25 and older, with an annual household income of at least $50,000 if single and at least $75,000 if married or partnered, or with investable assets of $150,000.
