Retirement is their top financial priority, but not only do Asian Americans plan to retire earlier than the general population, they’re doing a better job of preparing for it.

That’s according to Prudential’s “Asian American Financial Experience” study, which also found that family figures heavily in Asian Americans’ financial decisions — both before and after retirement.

While the general population expects to retire at age 65.9, Asian Americans have a target retirement age of 64.6 — 15½ months earlier. More Asian American parents consider it important to pay their children’s college tuition — 22 percent, compared with 14 percent of the general population — and 33 percent are caregivers for another person (compared with21 percent of the general population). Seventy percent of those caregivers are paying some or all of the living expenses for the person they’re helping.

But all that notwithstanding, among Asian Americans aware of how much income their workplace retirement plans will generate, 74 percent say they’re on track to meet retirement goals.

Higher salaries, on average — a median personal income of $62,000 and a median household income of $87,000, compared with $42,000 and $62,000, respectively, for the general population — help with that confidence. But so do several other factors: higher levels of education — 38 percent have a bachelor’s degree, compared with 26 percent of the general population — and higher-paying jobs. Asian Americans are more likely to hold professional, managerial or administrative jobs that tend to pay more than other positions (55 percent hold such jobs, versus 47 percent for the general population).

Yet another piece of that on-track puzzle is saving for retirement. Asian Americans, at 76 percent, are more likely than the general population, at 66 percent, to have access to a retirement savings plan at work. And 58 percent of those with access to a workplace plan contribute to it at a percentage equal to or greater than the amount their employer matches.

In addition, Asian Americans estimate the value of their household financial assets, excluding their primary residence or a business, at an average of $445,600; the general population trails that, at $385,500. In addition, 17 percent of Asian Americans have at least $500,000 of equity in their homes, compared with just 8 percent of the general population.

Instant Insights /

Study: Asian Americans plan to retire a year earlier than other groups

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