(ARA) – The financial downturn has affected most Americans in some way, and Asian Americans are no exception, a new survey reveals. In fact, eight out of 10 Asian Americans polled by Prudential Financial, say their savings and investments have been negatively impacted in recent years.
“Asian Americans on the Road to Retirement” is based on an online study conducted in July 2009 that polled a total of 656 Asian Americans who were sole or joint financial decision makers.
A majority of those surveyed thought planning was an essential part of retirement success, but only 18 percent currently use licensed financial professionals for long-term financial planning needs, such as how to achieve retirement goals.
Additional survey findings included:
* Only 27 percent of those surveyed have a formal written plan in place for retirement.
* Financial protection in retirement was a key concern, but few had adequate knowledge about the various life insurance products available.
* Only a small percentage understood the role that investment vehicles like mutual funds or annuities play in a retirement portfolio.
Understanding cultural influences
Cultural differences definitely come into play when you look at how people from different backgrounds approach planning for their financial security. Asian Americans, for example, often look to family and friends for financial advice, rather than a financial professional. Asian Americans also have a tradition of personally caring for aging family members, but for those approaching their golden years, the prospect of living with adult children should not be viewed as a substitute for building an adequate nest egg.
“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,” says John Greene, president of agency distribution at The Prudential Insurance Company of America, based in Newark, N.J. “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.”
The need for professional assistance
Now more than ever, financial professionals play a critical role in helping individuals from all cultures explore various investment vehicles. Asian Americans nearing retirement are an especially underserved group when it comes to getting the help they need. Clearly, having a plan is essential toward achieving future lifestyle goals, particularly for those nearing retirement.
Like other consumers who are looking for guidance, Asian Americans who want to learn more about investment options should seek out a financial professional they feel comfortable with. A good place to start is through referrals – ask friends and coworkers if they can recommend a financial professional and consider interviewing several. The right individual will help identify financial objectives and lead discussions on topics ranging from investments to retirement savings. Having the right plan in place is an essential first step to helping to obtain retirement security, and can help keep you on track to achieving your hopes and dreams for the future.
Courtesy of ARAcontent
