According to new research announced by Northwestern Mutual, the majority of U.S. Hispanic college graduates (62 percent) consider themselves to be “highly disciplined” or “disciplined” when it comes to their financial planning habits.
The Northwestern Mutual research also indicates college-educated Hispanic males (72 percent) and young adults (73 percent of ages 18-34) are far more likely to consider themselves to be “highly disciplined” or “disciplined” planners, while college-educated Hispanic women and older Hispanics (55+) consider themselves to be “informal” planners (42 percent and 44 percent respectively).
However, about half of U.S. Hispanic college graduates surveyed (55 percent) reported having plans in place to prepare them financially to live to age 85. The latest data shows an average Hispanic woman will live to be 83.1 years old; an average Hispanic man will live to age 77.9[i].
“It is great to see that many Hispanics have the financial habits instilled to ensure a stable future for themselves and their families,” said William Taylor, Northwestern Mutual vice president. “While the results of the study illustrate that many are on the right track, it also highlights an opportunity to educate those who are taking a more casual approach to financial planning, namely, older Hispanics and Hispanic women, to help them get to – and through – retirement.”
Married, college-educated Hispanics are more likely to have a financial plan in place (67 percent vs. 46 percent of not married), but only 27% of people are financially prepared to live to age 95. Respondents’ preparedness to live to 95 goes up with those who are married (34 percent) and aged 55 and over (45 percent).
Education also has an influence on a person’s commitment to achieving financial goals. Three-in-four Hispanics with an MBA degree (77 percent) described themselves as “highly disciplined” or “disciplined” in regards to financial planning.