Hispanics Feel Least Prepared for Retirement

February 2, 2012 (PLANSPONSOR.com) – Fifty-four percent of Hispanics report they feel “not very” or “not at all” prepared for retirement.  

A study commissioned by the ING Retirement Research Institute, called “Retirement Revealed,” examined the attitudes, behaviors and preparedness of different ethnic groups, including African-Americans, Asians and Hispanics, regarding their future retirement.

According to the study, all populations found retirement planning to be a daunting task. The study found 50% of African-Americans, 48% of white and 44% of Asian respondents feel they are not prepared for retirement.

These feelings correspond with the amount saved in employer-sponsored retirement plans, where Hispanic respondents reported having the lowest average balances ($54,000) in their retirement plans. This amount was considerably less than the average balance across all groups ($69,000).  In contrast, Asian respondents reported having the highest average plan balances ($81,000).

Other key findings from the study include:

Financial Information 

• Non-whites were more likely than whites to get their investment information and guidance from the Internet and media. African-Americans (54%), Asians (53%) and Hispanics (50%) indicated that the media and Internet were the primary source of getting advice and guidance compared to 45% of white respondents.
• Whites were more likely to use a financial professional.  
• While nearly one in three (28%) of overall respondents work with a financial professional, only three-quarters (75%) of this group indicated their adviser looks at their complete financial picture. 
• Face-to-face communication with a financial professional is ranked the highest in terms of value provided in getting information about their retirement plan and other employee benefits.

Barriers to Saving 

Nearly three-quarters (73%) of respondents admitted to having barriers to saving.  Among the groups, African-Americans said debt was their biggest barrier. Needing to know more about their savings options is a greater barrier to savings for Hispanics than for any other group.