Context

Prudential undertook a Financial Wellness Census to understand Americans’ financial goals and experiences. This report considered the experiences of a range of sub-groups within the larger survey to explore how diverse experiences affected those groups.

That study had identified four segments: Confidents (34%, doing well and believing they were), Pessimists (12%, objectively doing well but not feeling so), Idealists (16%, not doing well, but believing they were) and Discouraged (37%, not doing well and recognising the fact).

The study

Prudential’s Financial Wellness Survey was a quantitative nationally representative survey of 3,013 adults in the US aged between 25 and 70. It was undertaken in September-October 2017. This report extracts and analyses findings of specific sub-groups (reported sample size in brackets): Asian Americans (171), African Americans (290), Caregivers (710), Hispanics (321), LGBT people (297) and Women (1,538).

The report offers a dense account of figures for each of these groups, as well as some comparisons within or between groups.

Key findings

Note: This section can only provide examples of themes covered.

• Wealthiest ethnic group, but also with the widest internal variation. Most Confident group. Those born overseas earned more than those born in the US.
• High focus on financial goals and supporting parents or children.
• Those born overseas saved 47% of their income, compared with 10% in the general population. More likely to make use of workplace retirement plans and more likely to be employed then the general population.
• Those born overseas were more optimistic (50%) about their financial futures than those born in the US (31%) or the general population (41%).

• Both higher- and lower-income groups more optimistic than the general population, although fewer reported being on target to reach them.
• Strong focus on supporting their children’s education and house purchase, and on taking care of other family members.
• Less likely to have emergency and retirement saving. 57% had no retirement savings (versus 44%), and those who did saved much less.
• Student debt levels are higher (35% versus 17% in higher income groups).
• Fewer owned their own homes (33% versus 58%) and more relied on insurance than inheritance for transferring generational wealth.

• 24% were caregivers. More men cared for parents than women and more women for children with special needs. Women spent 45% more time providing care. Most worked full time. People of color were more likely to be caregivers. Over 40% regarded themselves as disabled.
• Main financial goals closely reflected caring needs.
• 38% felt that they would never be able to retire (versus 25%). More likely to have debt unrelated to housing, cars or education, but also to use financial advisers. Those who cared for a disabled child were more likely to be Discouraged.

• Earned less than the general population, particularly those born overseas. Younger than the general population and more likely to live in big cities.
• Overall financial goals focused heavily on reducing debt, increasing home ownership and supporting family.
• Those born overseas were much less likely to have retirement or life insurance plans, but much more optimistic about buying a home or paying off debt than those born in the US or the general population.

• 10% identified as LGBTQ, 38% were millennials. Earned less, particularly LGBTQ women.
• Women prioritised major purchases while men had lower interest in financial goals. Women were more confident about meeting them but also more interested in financial advice.
• Overall owned fewer financial products and were saving less for retirement.
• More likely to feel that wage inequality due to discrimination is a barrier to their financial success

• 54% were the primary household earner but with more responsibilities. 65% had children.
• More interested than men in financial goals but further away from them. More worried about this.
• Pay gender gap of 37% in favour of men, so less available for saving and more likely to have higher student loan debt.
• Large variations in experience with ethnicity, marital and job status.

Points to consider

• Only a short outline of methodology in another document.
• No detail on survey mode.
• No indication of confidence levels.

• US experiences, financial arrangements and demographics are very different to other countries.

• Group definitions not always clear.
• Sometimes speculates and notes findings from elsewhere, not always clearly.
• Not easily summarised. Would benefit from more tabular presentation.