According to a recent study, U.S. Latinos are the least likely group to save money in retirement savings accounts like 401(k)s and only 10% have individual retirement accounts.
As discussed in a segment on National Public Radio, retirement for the 50 million Latinos in this country is not looking good. While some speculate that low wages may keep Latinos from saving, research found that even between the highest earners, $120,000 and up, they still save less than their counterparts. Researchers found that: ”Hispanics had $150,000 saved for retirement, compared with $155,000 for African-Americans, $161,000 for whites.” Asians saved the most, with $223,000 stashed away.
Experts and researchers blame the lack of financial literacy and education within the Latino community mixed with a culture that places emphasis on taking care of the whole family, even if it means sacrificing saving the future. Not only are they spending money on their own children, but also caring for elderly parents, and helping siblings, nieces, nephews, or even grandchildren.
Considering that Latinos are the fastest growing ethnic group in the U.S. and that by 2050 will make up almost one-third of the population, this could become a serious problem. Latinos need to make personal finance and saving part of the daily conversation and get educated about the importance of putting money aside for the future.
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