Asian Americans Have Better Retirement Benefits Savings than the General U.S. Population
A new study has revealed that Asian Americans or Pacific Islanders have better retirement benefits savings than the general U.S. population. They plan to retire one year earlier than the general U.S. population. They also don’t want to be a burden on the loved ones post retirement and they wish for a comfortable retirement too. The study also explored the reasons on why their savings were better than the rest.
The Study on Retirement Benefits of Asian Americans
The study was conducted by Prudential Retirement and specified that the Asian Americans have similar financial challenges like the general U.S. population. They also have to deal with the problem of saving enough for retirement while managing household budgets. The study found out that Asian Americans also feel better off financially when compared to the general U.S. population. They plan to retire at the age of 64.6 which is one year earlier than the general U.S. population.
The Reasons
Sri Reddy who serves as the Head of Full Service Investments at Prudential Retirement in Hartford, Connecticut states that there are three reasons why Asian Americans are better prepared for retirement. The first factor is that most Asian Americans live on East or West Coasts where the incomes are higher as compared to the national average which ensures that their savings are higher. The second reason is that they are the first generation of immigrants who obtain visas for jobs that need higher education. This means that they work for larger employers who usually offer a defined contribution retirement plans.
The third reason is that when they come into a new country as an immigrant they don’t have a safety net so they start saving as soon as possible. The survey showed that most of the respondents had a year’s worth of funds saved for a rainy day.
Key Findings
The survey also highlighted that 49 percent of Asian Americans want to maintain their current lifestyles in retirement. It also pointed out that 38 percent try hard to not become a burden on their loved ones and make it their number one priority. Reddy says that plan advisors and sponsors can help the Asian Americans to make better financial decisions so that their retirement benefits savings goals can be achieved. He added that Asian Americans need to know that debt can be good at times too.
