The 2022 Retirement Risk Readiness Study was carried out by Allianz Life Insurance Company of North America. Some BIPOC Americans, including Hispanics and Asian/Asian Americans, report receiving less institutional backing than they did a year ago. This is despite the significant financial hardships brought on by the pandemic over the past two years.
From 2021, there was a reduction in the number of financial professionals working with each BIPOC population identified in the study. Nevertheless, white Americans’ interaction with financial experts remained constant (48% in 2022 vs. 49% in 2021):
Black or African American population: 24%, down from 38% in 2021
Hispanic population: 35%, down from 44% in 2021
Asian/Asian American population: 32%, down from 36% in 2021
The absence of interaction with financial experts could bring feelings of unpreparedness. 62% of Black/African Americans, 68% of Hispanics, and 72% of Asian/Asian Americans, compared to 78% of whites, stated they were financially prepared to pay for the various things or passions they’d like to undertake.
Dealing with the pandemic for the past two years has further widened racial wealth inequality. Therefore, it is disheartening to discover that BIPOC groups are not receiving more financial planning assistance than the previous year. Since there is interest, the financial services industry can use this to get closer to BIPOC clients.
Engagement is down, but interest is up
Even though fewer BIPOC respondents are currently working with a financial expert, the proportion receptive to doing so in the future is growing.
For each BIPOC group, the proportion of respondents who haven’t used a financial professional but said they’d think about doing so increased:
For Black/African American respondents, it rose from 32% to 37%.
For Hispanic respondents, it increased from 30% to 34%.
For Asian/Asian American respondents, it increased from 34% to 39%.
Personalized help to meet changing needs
The financial services sector will benefit from people’s increased interest in consulting professionals because of the pandemic. The pandemic is likely to have altered the particular financial planning needs of each BIPOC group, prompting the need for more specialized professional support.
Black/African American respondents prioritize working with a financial professional on short-term planning difficulties and pursuing a non-traditional “work to retirement” path more. This was because their confidence in being able to maintain their preferred standard of living decreased (from 71% in 2020 to 77% in 2021).
Interest in receiving assistance with budgeting is 37%, compared to 27% for white people, 30% for Hispanics, and 29% for Asian/Asian Americans.
Value assistance with debt repayment — 31% vs. 20% white, 29% Hispanic, and 20% Asian/Asian American respondents.
Recognize the advantages of following a non-traditional path where you experiment with various things at various points in your life (e.g., you work, take breaks, go back to school, volunteer) — 49% Asian/Asian American; 52% Hispanic; 57% vs. 45% White.
More Hispanic respondents than other groups will seek assistance in managing their finances after making poor choices during the pandemic.
21% versus 15% of whites, 13% of Black/African Americans, and 7% of Asian/Asian Americans regret taking money out of retirement funds.
More likely to seek help with establishing a legacy for family (28% vs. 19% white; 18% Black/African American; 20% Asian/Asian American);
More likely than white people (20% vs. 10%) to ask for help staying in their house; 11% of the population is Black or African American; 11% are Asian or Asian Americans.
Respondents who identify as Asian or Asian American are more likely than other respondents to find value in dealing with a financial advisor who offers comprehensive financial services. They would be helped in accomplishing their retirement goals and are more focused on increasing their retirement income as a result.
White people prefer holistic financial services 51% to 41%, compared to 50% of Black and African Americans and 44% of Hispanics.
Concerned that the rising living expense will prohibit them from enjoying retirement: 73% compared. 58% for white people, 60% for Black or African Americans, and 69% for Hispanics.
They are concerned that market declines may affect their nest egg: 69% of Hispanics, compared to 58% of Whites and 47% of Black and African Americans.
In February 2022, Allianz Life conducted an online survey, the 2022 Retirement Risk Readiness Study, with 1,000 people in the contiguous United States. They were at least 25 years old and had an annual household income of $150k OR investable assets of $50k.
People who said they were African American or Black (388 responses), Hispanic (355 responses), or Asian or Asian American were overrepresented among respondents to the study (373 responses).
About the North American Allianz Life Insurance Company
Since 1986, Allianz Life Insurance Company has received recognition as one of Fortune’s 100 Best Places to Work and one of Ethisphere’s World’s Most Ethical Companies. The firm has continued its purpose by offering various annuity and life insurance products. This would aid Americans in realizing their goals of retirement security and income. Allianz Life distributed more than $10.6 billion to its customers in 2021, adding value to its policies. Allianz Life is one of the foremost providers of fixed-indexed annuities, registered index-linked annuities, and fixed-indexed universal life insurance. It is a branch of Allianz SE, a global company that provides financial services and has 150,000 employees in more than 70 countries. The Minnesota United of Major League Soccer plays at Allianz Field® in St. Paul, Minnesota, proudly sponsored by Allianz Life.
Contacts
Faust Jeff
(612) 670-8971
@AllianzLife
Contact Information:
Email: [email protected]
Phone: 8777993433
Bio:
After spending many years studying information technology, specializing in web development, digital marketing, and search engine optimization (SEO), I enjoy applying my skills and experience in helping others achieve their goals online.
As a marketing specialist at Credkeeper, I help people get the most out of their online reputation. Your prospects perform Internet searches for your name before they buy from you. What they see on the first page of Google outweighs almost all other marketing! What do people currently see when they search your name on the Internet?
If you would like to know more about Credkeeper and what we can do for you, feel free to reach out to me!
