A new study from Fidelity Investments offers an insightful look into the financial behaviors and future expectations of Asian American and Pacific Islander communities in the US.
Despite only constituting 7.3 percent of the national population in 2023, AAPI groups are the fastest-growing racial demographic in the country, with projections estimating their numbers will quadruple by 2060 to over 47 million individuals.
Among several key financial habits and trends within these communities, the research found a significant 67 percent of AAPI individuals are satisfied with their saving habits, compared to 60 percent of the broader US population.
The demographic shows a tendency toward fiscal prudence, with only 35 percent having needed to access emergency funds in the past year, a contrast to 45 percent of the general population. Additionally, 26 percent reported having surplus money after monthly expenses, higher than the 21 percent seen across all demographics.
However, the study also highlights a gap in financial advisory services for the AAPI community. With only 4 percent of certified financial planners identifying as AAPI, there's a significant underrepresentation, which may be why only 17 percent of AAPI individuals Fidelity surveyed said they work with financial advisors.
AAPI women are more engaged in managing their finances, according to the research. Within that group, 19 percent self-reported as hands-on with their financial matters, exceeding the national average for all women.
The AAPI community's robust use of technology also shines through in their financial practices. Compared to the general population, AAPI individuals prefer online platforms for financial education (25 percent vs. 21 percent), retirement planning (23 percent vs. 17 percent), and even estate planning (17 percent vs. 12 percent).
Family and intergenerational considerations are also pivotal, with one-third of AAPI individuals living in multi-generational households. Reflecting that family focus among Asian Americans, 29 percent of AAPI individuals are worried about caring for aging parents (vs. 23 percent of the US population overall) and 34 percent turning to family members for inspiration on financial resolutions (vs. 28 percent of Americans overall).
The survey also found AAPI respondents take a proactive approach to financial planning, with 42 percent calibrating their budgets accordingly in the face of mounting financial pressures, such as the resumption of student loan payments.
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