In Prudential Financial, Inc.’s latest study, they found a large gap in retirement planning for Asian Americans. Their press release, “Asian Americans Not Financially Ready for Retirement,” highlights the findings. Not only have they not prepared enough with the purchase of immediate annuities and other retirement products, they don’t seem to be seeking any professional guidance in the matter. Eighty percent of Asian Americans lost money in the recent economic downfall, both from investments and savings. They still have very ambitious retirement goals, but there are large gaps between those goals and the retirement they’ll be able to achieve with their current savings and plans. In the traditional belief system of the Asian culture, elderly are to be cared for by family members. But of the Asian Americans surveyed, only one-third of them were banking on that family care. About one-fifth of those surveyed planned to use government care like Social Security to fund their retirement.
There are many components missing from Asian Americans’ retirement plans, according to the survey “Asian Americans on the Road to Retirement.” Less than thirty percent of those surveyed actually had a formal written plan for their retirement. There was also not enough understanding or guidance related to life insurance and its importance for Asian families. Not many of the survey participants knew the great value that an annuity, mutual fund, and other long term investments bring to retirees. Ninety-eight percent of the survey participants know that a successful retirement depends on a good plan, but only eighteen percent have spoken about such a plan with a financial professional. The Asian Americans surveyed have similar issues with the rest of Americans; Prudential recommends learning more about the financial products that can fix damaged portfolios and provide a secure retirement.