VIDEO from Prudential and Synaptic Digital: African Americans Face Barriers to Realizing Financial Goals
While optimistic, African Americans face barriers to realizing financial goals
NEWARK, N.J., April 13, 2011
NEWARK, N.J.April 13, 2011 /PRNewswire/ — African Americans say they are optimistic about achieving their financial goals, many of which reflect a strong focus on the well-being of the family and community, according to The African American Financial Experience, a study released today by Prudential Financial, Inc. (NYSE: PRU). However, the study also found that African Americans tend to hold fewer financial products, invest more conservatively, lack relationships with financial professionals and be more likely to borrow from company retirement plans – all of which are barriers to achieving their financial goals.
See video from Prudential at: http://inr.synapticdigital.com/Prudential/AA/
The study underscores growing affluence in the African American community and the importance of financial planning to achieve financial security. But while African Americans are looking for assistance and advice, 78 percent feel financial services companies have not effectively engaged the African American community and, as a result, most do not use or have access to financial advisors.
"Understanding the financial needs of the African American community is essential if the financial industry is to build trust and productive relationships," said Charles Lowrey, chief operating officer, Prudential's U.S. Businesses. "We believe this study gives us great insight into ways the financial services industry can address challenges faced by the African American community."
The African American Financial Experience found that only two in 10 African Americans believe that they are on track to meet their planning and savings goals for retirement, and nearly twice as many say they are way behind or haven't even started. And, while most Americans expect company-sponsored retirement plans to be the primary source of retirement income, African Americans are slightly less likely than the general population to put money into these plans on a regular basis. And they are three times more likely to tap into their 401(k) or similar plans to meet immediate financial needs.
The African American Financial Experience survey was conducted in November 2010 as part of a series of research projects focused on multicultural markets. For more information on the survey, visit www.prudential.com/africanamericans.
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SOURCE Synaptic Digital; Prudential