Survey observes mixed feelings among Hispanics
By National Underwriter
By Warren S. Hersch
Hispanic investors report feel comfortable financially, but many are concern about their ability to manage debt and save for retirement, according to a new Wells Fargo nationwide survey.
Roughly half of Hispanic investors surveyed (49%) report feeling comfortable financially (similar to 51% of the general population) and confident in their financial future (55% of Hispanics, similar to the general population, 52%). Fifty-seven percent of Hispanic investors also reported feeling secure in their current job situation, consistent with 55% of all US adults.
Hispanic investors are more optimistic about the political direction of the country, with 50% of those surveyed seeing the political direction improving, compared to 43% of all adults. Hispanic investors are also generally optimistic about the economic direction of the country and their local economy.
Half (51%) of those surveyed say the U.S. economy will improve in the next two years (similar to 47% of all U.S. adults), while only one in five (19%) expect the U.S. economy to decline (compared to 33% of all US adults). In addition, Hispanic investors are more likely to anticipate improvement in their local economy in the next two years (53% vs. 45% of the general population).
Despite financial confidence and optimistic outlook, debt remains a top concern for many Hispanics, as half (50%) report that they have more debt than they feel comfortable with, vs. 38% of the overall population. A quarter (25%) of Hispanics surveyed report concern about losing their home, compared to 12% for the overall population. And the majority of Hispanics (57%) report they are more focused on reducing debt than saving for retirement (similar to 53% of the general population).
While Hispanic investors appear to be taking steps toward saving, there is still anxiety about having enough for retirement. Nearly half (45%) reported cutting back on spending to save for retirement, higher than 36% overall among US adults. Almost half of Hispanic investors surveyed (48%) are still concerned they will not be able to save enough for retirement, similar to 52% of the overall US population.
“Hispanic investors are facing tremendous challenges when it comes to saving for retirement,” says David Roda, regional chief investment officer for Wells Fargo Private Bank. “We are seeing immediate financial concerns like covering household bills and mortgage payments are interfering with their ability to put money away toward retirement,”
Living in multi-generational households may also significantly impact Hispanic investors' savings, as a number of respondents are caring for their own children, as well as aging parents or grandparents. Nearly one in five (18%) of Hispanic investors report currently living in a three-generation household and 27% expect to do so within the next ten years. Living with and supporting multiple generations has an impact on the ability to save for retirement, as only 28% of Hispanic investors in three-generational households expect to maintain their lifestyle in retirement, compared to 56% outside of a multi-generational household.
Originally published on LifeHealthPro.com