Prudential Financial Inc. (NYSE:PRU) is reporting that 43% of Asian Americans have less than $50,000 in retirement savings.
Prudential, Newark, N.J., commissioned a survey of 656 Asian Americans who were sole or joint financial decision makers, were between the ages of 25 to 65, and had total household income of at least $50,000 at the time that they participated in the survey.
About 80% of the participants said the 2008 market downturn hurt their savings and investments, but only 1 in 3 said they expect to depend on family members to support them when they retire, and just 20% said they expect to depend on Social Security or other government programs, Prudential says.
But Prudential found that many Asian-American survey participants are falling short in terms of retirement preparation.
- Only 18% said they have talked to a financial professional about retirement planning.
- Only 27% have a formal, written retirement plan.
- Many lack a broad understanding of the types of life insurance products that are available.
- Many are unfamiliar with the role that investment vehicles such as mutual funds and annuities can play in retirement.