According to the second annual Allstate “Retirement Reality Check” survey, Hispanic Baby Boomers have more concerns about their upcoming retirement than others of their generation, possibly because they expect to be burdened by greater financial obligations. The survey also found that Hispanic Baby Boomers are looking forward to a more rewarding and active retirement than the general population surveyed.
Fully 73 percent of surveyed Hispanic Baby Boomers reported they are apprehensive about retiring, compared to only 65 percent of other Baby Boomers surveyed. And 39% admit to feeling overwhelmed by the thought of retirement, compared to less than a quarter (23 percent) of the general population.
Adding to surveyed Hispanic’s anxieties is the fact that they anticipate carrying family-related and financial obligations into their retirement. Specifically:
Thirty percent of the Hispanic Baby Boomers surveyed plan to provide financial support for children under 18 years of age, while 28 percent plan to support a child over 18. Thirty-one percent of surveyed Hispanics plan to provide financial support for elderly parents or in-laws during retirement.
Surveyed Hispanics’ expect other financial obligations in retirement to include saving for the future (78 percent), carrying a mortgage (23 percent), making car payments (43 percent) and credit card payments (31 percent).
“The survey found that while Hispanic Baby Boomers are looking forward to their retirement they are more concerned than many Americans about the financial burdens they will face,” said Peggy Dyer, senior vice president of marketing at Allstate Financial, a business unit of The Allstate Corporation. “It’s never too late for these individuals to plan for a secure retirement. By making smart choices now, Baby Boomers may feel less apprehensive about their financial future.”
“Despite their financial concerns about retirement, many surveyed Hispanic Baby Boomers are not receiving financial advice and don’t know where to look for it,” said Dyer.
Sixty-four percent of Hispanics surveyed admitted that choosing the right financial planning and investment product is a challenge for them.
Of those surveyed, 72 percent of Hispanic Baby Boomers do not currently work with a financial advisor, in contrast to 56 percent of the general population surveyed.
Forty-four percent of surveyed Hispanics feel ignored by financial institutions, compared to 34 percent of the general population surveyed.
Not your parents’ retirement
Although apprehensive about funding their retirement, many surveyed Hispanic Baby Boomers are looking forward to a rewarding retirement:
Fully 70 percent of Hispanics surveyed believe their retirement will be more fun than their parents’, compared to 58 percent of the general population surveyed.
Sixty-one percent of surveyed Hispanics expect their retirement will be more structured and planned day-to-day than their parents’, versus 36 percent for the general population surveyed.
The “Baby Boomer” group is the nation’s largest generation, making up 29 percent of the U.S. population. Of the 76 million Americans aged 38 to 56, 6.8 million are Hispanic. This represents 19.4 percent of the U.S. Hispanic population.