Although they may feel reasonably prepared for retirement, Americans who identify as people of color may be misinterpreting their financial situation and putting their retirement at risk, according to a study by Allianz Life.
The study found more than half (55%) of people of color believe they are currently saving enough in a retirement account, while 52% feel they have plenty of time to save for retirement. More than one-third (35%) say retirement is too far away to start worrying about it.“The level of confidence POC have in their retirement readiness could be attributed to different cultural values that shape their decision making,” Cecilia Stanton Adams, chief diversity and inclusion officer at Allianz Life, said in a release. “Oftentimes in communities of color, breadwinners are expected to balance support for multiple generations with their personal retirement goals. This complexity, among others, could be responsible for the disconnect we see between perception and reality, putting POC at higher risk for retirement insecurity.”
The survey found that less than half of people of color respondents participated in employer-sponsored retirement plans (48%), only 33% had life insurance, 21% had an individual retirement account and just 5% had a fixed or variable annuity. Nearly seven in 10 said they plan to work into retirement.
“A significant factor in POC’s retirement readiness may be a lack of professional help,” Allianz said in a release. Less than one-third (32%) of respondents indicated they are currently working with a financial professional.
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