Hispanic
Americans, the nation's fastest-growing minority group, are least
prepared for retirement, according to a new ING Study that compares how
different ethnic groups are planning for their financial future. These
findings come in the midst of growing nationwide anxiety over
retirement, as some Americans report not having enough money to retire.
While 54 percent of Hispanic respondents said they felt either "not
very" or "not at all" prepared for retirement, 50 percent of black, 48
percent of white and 44 percent of Asian respondents said they felt
ill-prepared.
Still, the study's findings aren't reflective of the nation as a whole.
ING's subjects were all employed full-time and earning a house-hold
income of $40,000 or more. As the wealth disparity between white, black
and Hispanic households continues to grow, the share of minorities
concerned about their financial future is likely to grow beyond what
the study reports.
That said, the ING study highlighted some startling figures: "57
percent [of Hispanics] have never calculated how much money they'll
need to continue their current lifestyle and 70 percent do not have a
formal investment plan to reach their retirement goals."
Respondents currently contributing to an employer-sponsored retirement
plan have an average of $69,000 saved in the plan, with the average
higher among Asian respondents ($81,000), and lower among
African-Americans ($55,000) and Hispanics ($54,000).
While 88 percent of respondents said their jobs offered an
employer-sponsored retirement plan, only three-quarters contributed.
According to the study: Blacks and Hispanics reported different reasons
for not saving. For Hispanic respondents, information and guidance
seemed to be the greatest hurdle with 57 percent saying they "expect
their employer to do more to educate them about retirement options."
For black respondents debt was a major obstacle preventing them from
saving.
While a higher percentage of Asian respondents said they contribute to
a employee retirement plan, the group of respondents reflected a
"tendency to place a higher priority on lifestyle choices, such as
purchasing a nice house or car, than planning for retirement."
As lawmakers debate the future of Social Security in Washington,
minority groups who do not have retirement funds to fall back on will
be more reliant on the social safety net. According to AARP, "84
percent of African-Americans over age 65 and 78 percent of Hispanics
over age 65 have income from Social Security."
