According to a new study published by Prudential, African Americans demonstrate continued optimism about their current financial situation and growing affluence. Yet gaps in long-term retirement planning, including not taking advantage of financial and investment tools, may hinder the ability to build long-term wealth. Maintaining one’s lifestyle in retirement and not becoming a financial burden to others emerged as two new financial priorities. This year’s study also examined two vital subsets of the African American community: caregivers and veterans.
Among those surveyed:
- Most African Americans report a greater sense of advancement and optimism about their financial situations, compared to the general population.
- More than half of African Americans surveyed say they are better off than they were five years ago and feel better off than their parents were at their age.
- There is also widespread optimism that financial gains will continue to build, with 58 percent of African Americans indicating they expect the next generation of their family will have a better financial situation than their own, compared to only 46 percent of the general population.
- Most African Americans (52 percent) feel very well prepared to make smart financial decisions, while only 40 percent of the general population describes themselves that way. However, among African Americans who express high levels of confidence about their financial decision-making and money management skills, significantly more respondents describe themselves as savers rather than investors, indicating there is a need to increase knowledge of and access to investments.
The entire report can be downloaded here.