A Prudential Financial which has just been published report on Asian Americans finds that they fare better than the American population as a whole, but that they face unique financial challenges, especially related to caregiving.

“We know anecdotally that Asian Americans value their families,” Srinivas D. Reddy, full service investment manager at Prudential Retirement, said at a press conference I attended on Thursday on The report, 2016 Prudential Research Asian American financial experience. “But what was most striking about this report was that as a population, they provide financial support to loved ones almost three times that of the general population. It is mind boggling. And that says a lot about their financial outlook, composition and savings behavior. “

Twenty percent of the 2,097 Asian Americans surveyed by Prudential provide financial assistance to loved ones, more than three times the 6% of the general population. And 10% of Asian Americans send them money overseas at least once a month. The median amount sent each time: $ 400.

“Sending money overseas to help your family takes away disposable income,” Reddy said.

One-third of Asian Americans are caregivers

One-third of Asian Americans polled by Prudential said they were caregivers – usually for a spouse, parent, other family member, or child with special needs. (In contrast, 21% of the general public are.) In addition, 70% of these caregivers pay part of the living expenses of the person they are helping compared to 57% of the general caring public. And 31% of Asian American caregivers pay all these expenses.

One reason for all this care: 13% of Asian Americans have parents or grandparents living with them, Prudential noted. Only 8% of the general population do so.

Looking at Asian American subgroups, Prudential found that American Indians are more likely to provide care to others and support others outside of the country. Korean Americans and Japanese Americans, on the other hand, are less likely to financially support others outside the country or to be caregivers.

This report, a representative sample of the country’s 11 million Asian American adults aged 25 to 70 (there are nearly 20 million Asian Americans in the United States), is the latest in Prudential’s series on the finances of the general public. Earlier reports covered money issues that women, African American, Hispanics and the LGBT community.

Fascinating findings on retirement and investing

The new report didn’t break down the results by age, so there aren’t any takeaways from Asian Americans in their fifties and sixties in particular. But there have been some fascinating findings about the finances of all Asian Americans (73% of whom are first-generation immigrants) as well as their retirement expectations and their savings and savings habits. investment.

The median income of Asian American households, according to Prudential, is $ 87,000. That’s over 40% above the $ 62,000 of the general population.

And the median net worth of Asian Americans (excluding their primary residence or any business they may own) is $ 445,600, nearly $ 100,000 more than the $ 385,000 in the year. general population. “It’s huge,” Reddy said.

Of course, not all Asian American subgroups are equally prosperous. A recent Brookings Institution report noted that Cambodians and Hmong are “at the bottom of the economic ladder, with high poverty rates, 38% and 29% respectively.

More financially secure than the general population

Only 20% of Asian Americans surveyed by Prudential say they live from paycheck to paycheck. Among the general population, 32% more say they live this way.

Asian Americans, Prudential said, are more likely than the general population to own individual stocks. About one in three do, compared to about one in four Americans overall. Only 38% of Asian Americans have credit card debt, well below 48% of the general population.

When Asian Americans Consider Retiring

When it comes to retirement, Prudential found that Asian Americans plan to retire at age 64.6, on average, 15 and a half months earlier than the general population. “It scares me,” Reddy said.

They also place retirement goals high on their agenda and are more likely to have access to a retirement savings plan at work than the general population: 76% vs. 66%.

“Contrary to the myth that Asian Americans want their children to take care of them,” said Reddy, only 4% of Asian Americans plan to receive help from their retired children and 4% other family members. “They want to be self-reliant,” Reddy said.

But only 46% of Asian Americans consider “having enough money to maintain my lifestyle through retirement” a financial priority, far less than 56% of the general population. And Asian Americans are less likely than the general population to think they will need to supplement their retirement income with part-time work; 25% intend to do so compared to 38% of the general population.

Few have financial advisers

Despite this optimism, only 31% of Asian Americans polled told Prudential they considered themselves “very well prepared” to make financial decisions. It’s pretty much the same as the overall population.

And relatively few – only 18% – work with financial advisers; 26% of the general population do.

“We need to teach them the value of working with a financial professional,” said Hurong Lou, director of financial services for the regional office of Prudential Advisors in Marlton, NJ. Added Smriti Sinha, Vice President, Initiation and Development of Individual Life Insurance Strategy at Prudential, “With Asian Americans, it takes a little longer to build that trust factor.”

Reddy joked that it took him four years for his own immigrant father to let his son create a financial plan for him. “I was new to the business and he wanted to make sure I knew what I was doing,” he said. “It took a long time to gain his confidence.

Financial breakdown of Asian American sub-groups

Prudential pointed out other differences regarding the finances of subgroups, including Chinese Americans, Japanese Americans, Indian Americans, Korean Americans, and American Americans. Filipino origin. According to the Prudential report:

Chinese Americans They tend to have higher incomes, higher asset levels, and greater home equity. They describe themselves as savers, with more knowledge about debt management and investing. They also have a greater variety of financial products. They have the highest levels of investment in individual stocks and retirement plans and are also more likely to trade stocks online.

Japanese Americans They are generally optimistic about their own financial outlook, but less likely to think the next generation will be better off for it. They are less likely to live on paycheck after paycheck.

American Natives They tend to have higher income levels and are also less likely to live from paycheck to paycheck. They are more likely to describe themselves as savers and to report the highest levels of knowledge on all financial topics.

Korean Americans They are less likely to live paycheck to paycheque, but more likely to work to supplement their income in retirement and to receive support from their families in retirement.

Filipino Americans They tend to carry more types of debt including a higher volume of credit card debt and cite debt reduction as a higher priority. In retirement, they are more likely to plan to work to supplement their income.

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