A recent study conducted by Wells Fargo says that African-American investors report high levels of confidence in their financial future, along with optimism about the political and economic future of the country.
The study found that three in five (60%) of African-American investors express confidence in their own financial future, slightly higher than the national response (52%), while half (52%) report they are better off now than they were three years ago, same as the general population.
However, while African-American investors have made progress in retirement planning and preparation, most are concerned about having enough money to retire. African-American investors are taking necessary steps toward preparing for retirement, as 45% of those surveyed have cut back on their spending to put away money for retirement (compared to 36% of the national population), and two in five (40%) non-retired African-American investors have a retirement savings plan in place (similar to the national population, 42%).
Compared to the US overall, African-American investors are less likely to consider themselves financially comfortable (38% vs. 51% overall). More than a third (36%) of non-retire African-American investors surveyed report that their biggest financial concern is paying their monthly bills; saving for retirement ranks second at 22%, followed by healthcare costs at 15%.
Three in five African-American investors are more focused on debt reduction (59%) than saving for retirement. And just over half (52%) of those surveyed are concerned they won’t have enough saved for retirement (similar to all adults). African-American investors less than 50 years old are particularly concerned (64%, vs. 39% of those ages 50 and over.)
For more information on the survey and for tools to help become more confidence and knowledgeable in money management, visit Wells Fargo’s My Financial Guide.
