African American investors are worried about having enough money to retire. The finding was released as part of a Wells Fargo nationwide survey.
Although African American investors have taken significant steps to prepare for a sound retirement in recent years, many are troubled by the prospect of not having an adequate amount of money for a sound retirement.
The cost of day-to-day living expenses as well as paying down debt has forced retirement planning to become a second or third priority among many African American investors. Forty-five percent of those surveyed said they had cut back on spending in order to put money away for retirement compared to 36 percent of the general population.
Forty percent of nonretired African American investors have a retirement savings plan in place, 2 percentage points lower than the national average. Among nonretired African Americans with a retirement plan in place, most earn more than $100,000 per year (68 percent), while only 35 percent of those earning less than $100,000 per year have a plan.
There have been many studies finding that younger generations are more prepared for retirement due to having a smaller amount in savings accounts when the recession hit as well as being influenced by horror stories from older generations finding themselves in an underfunded retirement. However, the study shows that African American investors under the age of 50 are particularly concerned with retirement, (64 percent versus 39 percent of those over age 50).
The survey finds that African Americans report high levels of confidence in their own financial future coupled with a sense of optimism about the direction of the political and economic future of the country. African Americans also report that they are better off now than they were three years ago.
African American investors are just as unsure as the national population when it comes to knowing where to safely invest in today’s market, (36 percent versus 31 percent). However, when compared with the national population, African American Investors feel they are less financially comfortable (38 percent versus 51 percent).