Hispanic Americans are moderately confident but face long-term financial planning challenges
Our 2014 "Hispanic American Financial Experience" study found that the Hispanic community is moderately confident in their future outlook for household finances, the local and national economy and the attention paid to their needs by the financial industry and government. In addition, the Hispanic community places a high priority on funding near-term goals such as reducing debt, purchasing a home or creating an emergency savings account, and many are supporting their multigenerational families. These factors make it difficult for them to prepare for long-term financial security.
Key findings of the study include:
- Hispanic Americans have a higher financial confidence (46 out of 100) than the General Population (43), but lower than African Americans (49) and the LGBT community (48).
- Unlike other groups, Hispanics' Financial Confidence Index scores are highly consistent across demographics.
Money and debt
- Hispanics identify more as savers than investors, with 37% indicating they are more of a "saver" than an "investor." However, nearly as many (36%) say they are "neither a saver nor an investor."
- Survey findings reflect a cultural aversion to debt, as evidenced by 62% asserting that there is no such thing as "good debt" and 49% indicating a preference to pay cash for an item or not buy it all.
- Household expenses, health care costs, savings and debt level—all near-term concerns—are ranked as higher concerns than retirement.
- Family finances are often multigenerational and global, as evidenced by one in six supporting parents and 42% of non-U.S. born sending money to relatives in their home country.
- The anticipated retirement age indicated by non-retired Hispanics is 66, which is three years later than the general population.
- 12% indicated they intend to retire at age 75 or later, compared to only 4% of the general population.
- Once retired, 73% plan to continue working at least part time.
- More than half of the Hispanics surveyed—regardless of income or country of birth—indicated a "poor" or "very poor" understanding of U.S. workplace-based retirement plans and Social Security.
- When compared to the general population, those surveyed cited less access (72% versus 83%) and lower contributions (71% versus 85%) to workplace-based retirement plans.
- 17% of employed Hispanics are unsure of whether their employers provide matching retirement contributions, compared to 8% of the general population.
Read Prudential's 2014 "Hispanic American Financial Experience" study.
Lea el estudio "La experiencia financiera de los hispanos residentes en los Estados Unidos" realizado por Prudential en 2014.
Prudential's research, The Hispanic American Financial Experience, was conducted from October 28–November 18, 2013, by GfK Custom Research, Inc. in both English and Spanish. This survey polled 1,023 Americans who self-identify as "Hispanic" and survey questions encompassed a broad range of financial topics.
All participants met the following criteria:
- Age 25–70
- Household income of $25,000 or more
- Some involvement in household financial decisions
This survey was designed to broadly represent characteristics of the 9.6 million Hispanic households with incomes of $25,000 or more. It is important to note, however, that the Hispanic community is composed of a number of different groups with unique cultural experiences, traditions and history. Results reported at the total sample level (n=1,023) are subject to a margin of sampling error of +/- 5.5%.
The term "Hispanic" is used consistently with the official U.S. government definition as included in the 2010 U.S. Census to refer to "a person of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin regardless of race."
The Prudential Insurance Company of America and its affiliates Newark, NJ
Prudential Financial, its affiliates, and their financial professionals do not render tax or legal advice. Please consult with your tax and legal advisors regarding your personal circumstances.