News

African-American insights

Financial services companies seeking to serve African-Americans should focus on women, who are more likely to be the household decision maker, and rethink the way they reach out to them, a poll has found

Financial services companies seeking to serve African-Americans should focus on women, who are more likely to be the household decision maker, and rethink the way they reach out to them, a poll has found.

Among the 1,500 African-American household decision makers 25 to 70 who were polled by Prudential Financial Inc., 72% of the women indicated that they hold the purse strings, compared with 54% of women in the general population.

The poll found that African-Americans tend to be independent learners, preferring to consult books, financial websites, employers and even faith-based organizations for investment education, indicating that these vehicles, as well as seminars and conferences, may be a good way to find clients within the community.

One reason advisers may be less likely to reach out to African-Americans is that half of those surveyed have less than $50,000 in company retirement plans and only 23% have more than $100,000 in savings. Only one-fifth of those surveyed believe that they are on track to meet their planning and savings goals for retirement.

Among African-Americans, the poll found that financial goals are not limited to increasing personal wealth or securing a retirement salary; 68% cited the importance of having funds to donate to charity or allocate toward education and pay off debt.

And about 80% believe that maintaining their lifestyle in retirement and not being a financial burden on loved ones is important, but only one-third are confident in their ability to pull that off.