The Hispanic Americans community’s top financial priority is supporting their multigenerational families rather than long-term financial goals like saving for retirement, according to a study by Prudential Financial.
The “Hispanic American Financial Experience” found that despite having more short-term financial goals, the Hispanic community is moderately confident in its future outlook for household finances and the economy.
The 2014 study showed that this community faced additional barriers to saving for their own futures because of the complexity of Social Security, a lack of access to work-based retirement plans and limited contact from financial advisors.
Because they focus on shorter-term financial objectives, like funding their children’s or grandchildren’s educations, they don’t have the ability to set goals for savings and retirement.
Fifty-three percent of Hispanic Americans said that saving for retirement is an important financial priority compared to 62 percent of the general population. Fewer than half of those surveyed said they lack a good understanding of Social Security, workplace retirement plans or financial products.
About 29 percent believe they will need only one source to fund retirement savings, compared to 19 percent of the general population.
The top financial priority for Hispanic Americans in 2014 is to pay down debt, yet only 38 percent feel confident they can achieve this. And while more than 37 percent said that saving money is a goal, only 26 percent felt confident they could actually accomplish it. Only 13 percent said they would contribute to a 401(k) or other retirement plan in 2014, but only 31 percent of those feel very confident they can successfully meet that resolution.
Hispanic Americans are half as likely to have a professional financial advisor and only half as likely to have been contacted by an advisor, but the study found that when they are contacted, they are as likely to work with a financial professional as the general population.
The online survey was conducted by GfK Custom Research, Inc. in both English and Spanish between Oct. 28 and Nov. 18, 2013.
Prudential Financial, Inc., is a financial services company with more than $1 trillion of assets under management as of Sept. 30, 2013.