Asian Americans Not Financially Ready for
Prudential research reveals retirement planning gaps
April 13, 2010 09:03 AM Eastern Daylight Time
NEWARK, N.J.--(EON: Enhanced Online News)--Most Asian Americans are not ready for retirement and are not
seeking professional guidance, a new study by Prudential Financial, Inc. (NYSE:PRU) shows.
Asian Americans were hit hard by the recent economic turmoil, with approximately 8 in 10 indicating their savings
and investments were impacted by the sharp market downturn of 2008 and 2009. Yet the study, Asian Americans
on the Road to Retirement, found they continue to remain focused on achieving ambitious retirement goals, while
balancing other responsibilities such as providing for family members.
“Asian Americans need to address the gaps that exist between the goals they’ve set and the lifestyle in retirement
they can now expect to achieve. This is particularly critical for those nearing retirement,” said John Greene, president
of Agency Distribution at Prudential. “Some 43 percent have less than $50,000 in retirement savings, and many have
little or no understanding of the financial options available to them.”
Despite the traditions of the “Asian belief system,” which suggests the elderly will be cared for by family, barely 1-in-
3 are looking to family for "retirement security," and just 20% are counting on the government or Social Security to
take care of them. Currently, their retirement plans lack a number of important components; additional findings
l Only 27 percent have a formal written plan in place for retirement.
l Life insurance is a key concern for this market, yet most need guidance and a deeper understanding of the
products available on the market.
l Only a small percentage of those surveyed understand the role that investment vehicles like mutual funds or
annuities can play.
While 98 percent of those surveyed think retirement success depends on their ability to plan well, only 18 percent