"Asian Americans not financially ready for retirement. Prudential research reveals retirement planning gaps "
Newark, NJ - Most Asian Americans are not ready for retirement and are not seeking professional guidance, a new study by Prudential Financial, Inc. (NYSE:PRU) shows.
Asian Americans were hit hard by the recent economic turmoil, with approximately 8 in 10 indicating their savings and investments were impacted by the sharp market downturn of 2008 and 2009. Yet the study, Asian Americans on the Road to Retirement, found they continue to remain focused on achieving ambitious retirement goals, while balancing other responsibilities such as providing for family members.
"Asian Americans need to address the gaps that exist between the goals they've set and the lifestyle in retirement they can now expect to achieve. This is particularly critical for those nearing retirement," said John Greene, president of Agency Distribution at Prudential. "Some 43 percent have less than $50,000 in retirement savings, and many have little or no understanding of the financial options available to them.
Despite the traditions of the "Asian belief system," which suggests the elderly will be cared for by family, barely 1-in-3 are looking to family for "retirement security," and just 20% are counting on the government or Social Security to take care of them. Currently, their retirement plans lack a number of important components; additional findings indicate that:
Only 27 percent have a formal written plan in place for retirement.
Life insurance is a key concern for this market, yet most need guidance and a deeper understanding of the products available on the market.
Only a small percentage of those surveyed understand the role that investment vehicles like mutual funds or annuities can play.
While 98 percent of those surveyed think retirement success depends on their ability to plan well, only 18 percent have engaged in a conversation with a financial professional.
"Much like the overall population in the U.S., Asian Americans need to broaden their knowledge about the financial products and services that can help mend their portfolios and achieve their retirement goals," Greene said.
Asian Americans on the Road to Retirement , an online survey, was conducted in July 2009 and polled a total of 656 Asian Americans who were sole or joint financial decision makers, between the ages of 25 to 65 and had total household income of $50,000 or more. The margin of error is +/-3.8% at the 95% confidence level.
For more information download a copy of Asian Americans on the Road to Retirement on Prudential website.
About Prudential.
Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $667 billion of assets under management as of December 31, 2009, has operations in the United States, Asia, Europe, and Latin America. Leveraging its heritage of life insurance and asset management expertise, Prudential is focused on helping individual and institutional customers grow and protect their wealth. In the U.S., the company's Rock symbol is an icon of strength, stability, expertise and innovation that has stood the test of time. Prudential's businesses offer a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. For more information, please visit www.news.prudential.com.
Website: http://news.prudential.com/images/20026/AsianAmericansontheRoadtoRetirementFINAL.pdf
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