Hispanics & Why They're So Poorly Prepared for Retirement
Posted: Apr 22 2014
When it comes to retirement, Hispanics face significant challenges as compared to the non-Hispanic population. A new study shows Hispanics tend to be less prepared for retirement than other populations in the U.S. Here are some of the factors that result in
-Hispanics tend to have less access to workplace based retirement plans than other populations. And even when they do have access, they are less likely to contribute.
-15% of Hispanics as compared to 6% of the general population say they feel compelled to help support elderly family members.
-31% of Hispanics place an importance on funding education for children and/or grandchildren (as compared to 18% of the general population) This makes sense when you compare it to these stats from another study that 65% of Hispanics as compared to 50% non-Hispanic population and 48% of African-Americans think getting an college education has meaning for the American Dream.
Another statistic stood out to me when reading this study which was 53% of Hispanic Americans say saving for retirement is an important financial priority as compared to 62% of general population respondents. This is concerning. Follow on questions for this study would be asking Hispanic respondents what they are planning to do for retirement.
Some of my hypotheses include they may be planning to continue working past retirement age, or they may as noted above, count on financial support from family.
As Hispanics are expected to hit majority population in states such as California by March of this year, and ranks are expected to only continue swelling across the U.S. in forthcoming years. We need to be aware of and continue to focus on the retirement and health needs of the aging Hispanic and Latino population, and work on tools to support the population.