IRI VISION: TWO BIG OPPORTUNITIES INSPIRED BY MULTICULTURAL DATA

As diverse as America is, we have common concerns. Among them, having enough money saved for a healthy retirement is a persistent and consistent worry across nearly all ages and cultures.

This particular worry ranked high among all consumer groups surveyed in TruStage's What Matters Now research, a multicultural, multigenerational study of Americans with annual household incomes between $18,000 and $500,000. However, certain segments of the study rated this worry higher than others.

The Multiracial, Native American and Hispanic participants in the TruStage study were more likely than their Black, White and Asian/Pacific Islander peers to name insufficient retirement savings as one of their highest worries. Hispanic respondents experienced the largest change in this concern, increasing significantly from 2017 to 2022.

A variety of factors may contribute to high incidence of retirement worries within multicultural segments, particularly among multicultural women. Those factors include the gender wage gap (which is higher for multicultural women), time spent away from earning an income to care for family and less overall financial confidence.

Generationally speaking, Millennials and Gen X are the most worried peer groups when it comes to the strength of their retirement coffers. Although Boomers were significantly more at ease about having enough savings to retire, their worries about the future were legitimate. The top-ranked worries for the Boomer generation were the rising cost of healthcare and what life will be like in the next few years.

Two big opportunities to improve consumer access to a safe and clear plan for retirement

Retirement advisors have a clear opportunity to ease these worries by introducing more consumers-especially those who may traditionally have been overlooked-to lesser-known products, such as annuities, that promise a steady income in non-working years.

The data highlights a second, equally significant opportunity: developing greater workforce diversity in the insured retirement industry. Meeting, learning and planning for effective, secure retirement savings options from someone who comes from a similar background, cultural point of view or financial starting blocks is often a more comfortable and confidence-building experience, especially for an individual who may be feeling anxious talking about their financial picture.

As retirement concerns persist across our multicultural and multigenerational population, the data reveals key opportunities for the industry to expand its reach and impact. Let's all play our part in continuing to educate on the importance of financial education for retirement and leaning into our diverse professional networks to promote financial services as a career opportunity. Mindfully considering the diverse financial and cultural needs of consumers can go a long way toward alleviating anxiety and, ultimately, securing a brighter financial future for everyone.

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The views and opinions expressed herein are those of the referenced organization or the individual listed as the authors of such content, and do not necessarily represent the official policy, position, or views of IRI, the IRI Board of Directors, IRI's member companies, or any IRI staff member.

IRI makes no warranty, express or implied, regarding the accuracy, adequacy, completeness, legality, reliability, or usefulness of any information, content, or materials included in this publication. In no event shall IRI be liable for any damages whatsoever arising out of, or in connection with, the use of the information, content, or materials included herein.

Unless otherwise indicated, all data in this article is sourced from TruStage's What Matters Now^TM quantitative and qualitative research, conducted in partnership with Ipsos and The Collage Group.

The views expressed here are those of the author(s) and do not necessarily represent the views of TruStage.

TruStage^TM is the marketing name for TruStage Financial Group, Inc. its subsidiaries and affiliates. Corporate headquarters are located in Madison, Wis.

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