The 2022 Retirement Risk Readiness Study* found that Americans who identify as BIPOC (Black, Indigenous, and People of Color, including Hispanic and Asian/Asian Americans) feel less prepared for their financial futures.
While 78% of white respondents said they feel prepared to support financially the various things they would like to do or passions they would like to pursue over the course of their life, fewer BIPOC respondents said the same.
Black/African American
Hispanic
Asian/Asian American
White
At the same time, fewer BIPOC Americans are currently working with financial professionals. Just 24% of Black/African American respondents, 35% of Hispanic respondents, and 32% of Asian/Asian American respondents said they were working with a financial professional. This is down from 38%, 44%, and 36% in 2021, respectively. The engagement of white Americans with financial professionals was steady at 48% in 2022 and 49% in 2021.
A better understanding of BIPOC perspectives on retirement planning can help financial professionals offer more detailed guidance to BIPOC communities. This is important since the number of respondents who said they were open to working with a financial professional increased this year to 37% for Black/African American respondents, 34% for Hispanic respondents, and 39% for Asian/Asian American respondents.
The Retirement Risk Readiness Study identified areas for each BIPOC community where financial professionals can offer specialized assistance.
Black/African American respondents were the most likely to say they wanted help from a financial professional with short-term planning issues.
When asked what are the most valuable things a financial professional could do for them, Black/African American respondents were most likely to say balance their budget to save and enjoy life and develop a plan to pay down debt.
Black/African American respondents were also more likely to say their ideal life would include a nontraditional path where they would work, take breaks, go back to school, and volunteer. While 57% of Black/African American respondents said they would like to have a nontraditional path, 45% of white respondents, 52% of Hispanic respondents, and 49% of Asian/Asian American respondents said the same.
Hispanic respondents were more interested than other groups in being able to leave a legacy for their family and continuing to live in their own home.
Hispanic respondents were also more likely to say that they regretted financial decisions they made during the COVID-19 pandemic. Around one in five (21%) Hispanic respondents said they regret taking money out of an investment account like a 401(k) and moving to cash during the pandemic. Just 15% of white respondents, 13% of Black/African American respondents, and 7% of Asian/Asian American respondents said the same.
Asian/Asian American respondents are more worried about how inflation and the stock market will affect their retirement than other groups identified in the study. When asked about what worries them about retirement, the majority of Asian/Asian American respondents said the rising cost of living preventing them from enjoying retirement (73%) and that the market will take a downturn and hurt their nest egg (69%).
Asian/Asian American respondents are more interested in financial professionals who offer holistic services. More than half (51%) of Asian/Asian American respondents said that a firm that provides more services than just financial planning to help meet retirement goals is appealing.
*Allianz Life conducted an online survey, the 2022 Retirement Risk Readiness Study, in February 2022 with a nationally representative sample of 1,000 individuals age 25+ in the contiguous U.S. with an annual household income of $50k+ (single) / $75k+ (married/partnered) OR investable assets of $150k.
The study included an oversample of respondents who identified as Black/African American (388 responses); Hispanic (355 responses); or Asian/Asian American (373 responses).
For financial professional use only.
