MassMutual study finds Latinos feel less secure and worry more about money than other Americans

Written on Oct 06, 2017

Middle-income Latinos in the workforce say they feel less financially secure and worry more about money than other Americans, posing higher hurdles to planning for retirement and building wealth, according to new research commissioned by Massachusetts Mutual Life Insurance Company.

Key findings:

Emergency preparedness. Three in 10 Latinos reported having less than $500 saved for emergencies, leaving workers unprepared and more likely to struggle if they were out of work for one month or experienced unexpected events. Furthermore, Latinos in the workforce are less likely than others to have at least $5,000 set aside for emergencies (28% vs. 42% of the general population).

Debt. In addition, unlike other consumer segments, the study revealed that debt and bills/cost of living tie as the top issues Latinos face in their households. They find it more difficult than others to manage monthly finances; nine in ten attribute this difficulty to high levels of debt and not having enough money.

Retirement preparedness. When it comes to preparing for retirement, Latinos feel they are falling behind, and, more so than others, wish their employer did more to educate them about saving for retirement. Just over half say having benefits through their employer makes them feel more secure.

Well-being. Among the concerns and obstacles to middle class workers' financial security, a key concern for Latinos is the well-being of their parents and their own personal health. While, like others, Latinos are most worried about politics and the direction of the country, they also are more likely than others to express concern about their household's financial situation and housing situation. More than half worry about household finances at least once a week.

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