The Retirement Spectrum: Ethnicity and Culture Influence Views on Retirement
2019 APR 12 (NewsRx) -- By a
The MassMutual State of the American Family (SOAF) study1 highlights differences between diverse communities for retirement planning, including the age that people plan to retire, the length of anticipated retirement, sources of income and other related issues. Diverse consumer groups surveyed were
“While we see many similarities among multicultural families when it comes to retirement planning, there remain important differences in how people view their retirement,” said
Approximately half of the participants surveyed had calculated how much savings they needed to retire, with about a third actually creating a formal plan, according to the SOAF survey multicultural findings. However, there were outliers. While 61 percent of Asian Indians calculated how much savings they needed to retire, the most of any group surveyed, just 35 percent of Indian families have an actual retirement plan in place. Korean respondents were the least likely to both calculate how much they need to retire (39 percent) as well as to create a clear plan for retirement saving (20 percent), the survey showed. Age is Relative Nearly half (45 percent) of all respondents -- with the exception of Koreans-- plan to retire by age 65 or sooner, according to the survey, with 22 percent intending to retire at age 60 or before. The most common response for an intended retirement age was, “I don’t know,” with 26 percent saying they are unsure.
Again, a few groups had different expectations. Twenty-five percent of African Americans and 26 percent of Chinese respondents plan to retire at age 60 or younger - more than any other groups - and only 10 percent of Koreans said the same, the least of any group. Koreans were more than twice as likely as any group to plan to retire later than age 70 or to say they don’t ever expect to fully retire.
Not everyone is as confident in their ability to retire as planned. One in five survey respondents overall indicated they were “extremely confident” in their projected retirement age, with African Americans (30 percent) and Hispanics (24 percent) expressing the most confidence. Asian Indians (12 percent), Chinese (13 percent) and Koreans (14 percent) were the least confident. Follow the Money “Expectations for retiring early and being confident about doing so reflect the greater prevalence of having a guaranteed income in retirement,” Lee explained. “For instance,
Overall, 54 percent of survey respondents indicated they expect to receive income in retirement from a pension. That compares to 63 percent of African Americans, 63 percent of Asian Indians, and 59 percent of Hispanics on the high side and 10 percent of Chinese respondents on the low end.
The biggest source of retirement income overall is tax-favored retirement savings vehicles such as 401(k) and 403(b) plans and IRAs (33 percent), the survey found. Hispanic respondents (28 percent) were least likely to depend upon such sources of income.
MassMutual’s survey reflected those findings, with 65 percent of respondents saying they expect to live two decades or more in retirement and 42 percent saying they expect to live 20-29 years after retiring.
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