Hispanics Optimistic About Their Families' Financial Future
February 28, 2013 by PR Newswire Association LLC
NEW YORK,Feb. 26, 2013 /PRNewswire/ — Eight in 10 Hispanics expect their family’s financial situation to improve over the next four years compared to only 68 percent of the general public. These results are among the findings from a new national survey conducted by New York Life Insurance Company and Ipsos Public Affairs, a leading global survey-based market research company. In a study of Hispanics age 18 and older, the vast majority of respondents expressed confidence in the economy; in their personal job security; and in their ability to retire.
“Today’s story of Hispanic Americans is one of growth, prosperity and influence,” saidHector Vilchis, Corporate Vice President for New York Life Insurance Company. “The New Year kicked off a momentous time for this important segment of the market. Hispanics are growing in population figures; in affluence and wealth creation; and in political influence. As they see the fruits of their labor ripen, they are feeling confident and their optimism for the future is matching their growing influence in this country.”
The telephone survey, which was conducted in December, found that 84 percent of Hispanic adults surveyed expect their family’s financial situation to improve in the next four years. More precisely, six in ten (60 percent) strongly agree and 24 percent relatively agree. Among respondents employed full time, over eight in ten (85 percent) feel confident about their current job security. Respondents also expressed confidence in their ability to retire without inconveniences. Two-thirds of Hispanic adults surveyed feel confident that they will retire without drawbacks, compared to just half (52 percent) from the general population.
The survey, conducted in English or Spanish (depending on the respondent’s preference), also found that despitethe confidence that respondents have in their financial futures, Hispanics expressed a greater desire for help with their long term planning than do adults from the general public. Almost half of Hispanic respondents (49 percent) agreed that they would like some help managing their finances more effectively, compared to just over a quarter of the general population (28 percent). When asked why they are not providing their family with financial protection, while the most frequently selected reason is “not having enough money to do so,” mentioned by 40 percent of Hispanics and 31 percent of adults from the general public, large proportions of Hispanics refer to lack of knowledge for not doing so. Over one third of Hispanic respondents (35 percent) said they needed more information for ways to do so, compared to only 15 percent of adults from the general population – a 20point gap. Additionally, one third of Hispanics (31 percent) also said they have not thought about it.
“There’s a thirst for financial protection information among Hispanics,” said Vilchis. “For those of us in the insurance and financial services industry, these numbers tell us that much work remains to be done when it comes to bringing much-needed information to the Hispanic community about the many resources that are available to them, so that they are better able to ensure a brighter financial future for their families. The good news is that New York Life is increasingly poised to address the financial preparedness needs of Hispanics.”
One of the many waysNew York Life is addressing these needs is via highly trained and educated financial professionals who are members of the Latino community and, as such, are able to connect effectively with the Hispanic consumer. In the last few years,New York Life has increased the number of financial professionals to over 1,700 Agents. These Agents are increasing their participation in community events and activities, while offering free financial reviews to help families and businesses define their financial goals and work towards meeting them. Agents in some of the largest Hispanic markets across the country will be scheduling days through the year where they will be offering free, no obligation sit-down meetings with individual families and business owners to discuss their financial protection needs. A new website in Spanish is scheduled to launch this spring.
This marks the second time thatNew York Life conducts a national poll assessing how Hispanics perceive their family’s financial protection surrounding the current economic climate. In 2010, three quarters (77 percent) of Hispanic adults surveyed agreed the recession increased their desire to provide a financial safety net for their families. This number decreased to 68 percent in 2012 (nine percentage points), indicating that the sense of urgency may not be there as much as it was two years ago.
“We must not lose sight of the bigger picture,” added Vilchis. “As the largest minority group and the fastest-growing segment of the U.S. population commanding over $1 trillion in annual buying power1, Hispanics cannot afford to be in the dark when it comes to being financially prepared. The future of wealth creation, preservation and transfer is bound to be global, multicultural and diverse as Hispanics continue to grow their influence and generate wealth.”
Other Survey Results
- Back in 2010, 36 percent of Hispanics reported that if something were to happen to the breadwinner in their family, taking an additional job would be the primary way to fund their family’s future financial goals. However in 2012, a much smaller proportion (21 percent) report that their family would rely on an additional job to fund their future financial goals.
- Mentions of life insurance (25 percent vs. 29 percent, respectively) and retirement savings (20 percent and 23 percent, respectively) have increased slightly among Hispanic adults since 2010.
- The New York Life survey also found that nine in 10 adults among both populations feel that it is important for their family to have a financial plan in place, including roughly seven in 10 who strongly agree.
- Among Hispanics, those most likely to feel this way include college graduates (97 percent vs. 88 percent without a college degree), those who prefer communicating in English (92 percent vs. 85 percent of those who prefer communicating in Spanish), and those who are married (90 percent vs. 84 percent of those who are not married).
- Hispanic adults are more likely than those from the general population to believe that children in their family are learning how to manage money responsibly (73 percent vs. 68 percent, respectively).
- Four in ten Hispanic respondents (41 percent) feel that families like theirs are usually able to pay for their children’s college education, compared to almost half of general population respondents (47 percent).
- Those Hispanics most likely to agree with this statement include those who have a household income higher than $75,000 (64 percent) than those who have at least some college education (51 percent).
- Those who are more comfortable speaking Spanish (37 percent), who only attended high school or less (34 percent) and who are employed part-time (33 percent) or not at all (34 percent) are least likely to agree with this statement.
Survey Methodology
These are some of the findings of an Ipsos poll conducted from December 6, 2012 to December 19, 2012 with a nationally representative sample of 501 Hispanics aged 18 and older, interviewed by telephone via Ipsos’ U.S. Hispanic Omnibus. With a sample of this size, the results are considered accurate within 4.4 percentage points, 19 times out of 20, of what they would have been had the entire adult population of Hispanics in the U.S. been polled. Respondents had the option to be interviewed in English or Spanish. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error. Survey data was weighted to ensure that the sample’s composition reflects that of the actual U.S. population according to U.S. Census figures.
A national survey of 1,003 adults from the general public was also conducted from December 6, 2012 to December 11, 2012 via telephone using Ipsos’ Telenation omnibus. A survey with an unweighted probability sample of this size and a 100 percent response rate would have an estimated margin of error of plus or minus 3.1 percentage points.
To receive additional information, or speak to a New York Life spokesperson, please contact Monica Contreras at (212) 576.8398 or monica_contreras@newyorklife.com.
Ipsos Public Affairs is a non-partisan, third party, survey-based research practice made up of seasoned professionals who conduct strategic research initiatives for American and international organizations, based not only on public opinion research, but elite stakeholder, corporate, and media opinion research. Ipsos has media partnerships with the most prestigious news organizations around the world. Ipsos Public Affairs is a member of the Ipsos Group, a leading global survey-based market research company that provides boutique-style customer service. To learn more, visit: www.ipsos-pa.com
New York Life Insurance Company, a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States* and one of the largest life insurers in the world. New York Life has the highest possible financial strength ratings currently awarded to any life insurer from all four of the major credit rating agencies: A.M. Best (A++), Fitch (AAA), Moody’s Investors Service (Aaa), Standard & Poor’s (AA+).** Headquartered in New York City, New York Life’s family of companies offers life insurance, retirement income, investments and long-term care insurance. New York Life Investments*** provides institutional asset management and retirement plan services.
Other New York Life affiliates provide an array of securities products and services, as well as retail mutual funds. Please visit New York Life’s Web site at www.newyorklife.com for more information.
*Based on revenue as reported by “Fortune 500 ranked within Industries, Insurance: Life, Health (Mutual),” Fortune magazine, May 21, 2012. See http://www.money.cnn.com/magazines/fortune/fortune500/2012/faq/ for methodology. ** Source: Third Party Ratings Reports as of 12/11/13. ***New York Life Investments is a service mark used by New York Life Investment Management Holdings LLC and its subsidiary, New York Life Investment Management LLC.
1 Source: HispanaTelligence Report, U.S. Bureau of Economic Analysis, 2004
SMRU# 499582
CV Exp. 6/1/13
SOURCE New York Life Insurance Company
