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Making financial wellness attainable for everyone

Nov 8, 2021
Empower Institute

How underrepresented groups view their financial health – and how employers can help

When it comes to financial well-being, Americans are generally optimistic. According to new research conducted by The Harris Poll on behalf of Empower Retirement, more than half of people surveyed believe they can attain financial health.

However, this confidence is not consistent across racial and ethnic groups. Only 38% of Hispanic Americans and 43% of Black Americans consider themselves financially healthy compared to 51% of white Americans. While the research reveals critical inequalities in terms of how different groups view their financial wellness, it also identifies a clear opportunity for employers to step in and create meaningful change.
 

Almost three-quarters (73%) of people of color say the concept of financial health needs a makeover — and companies must redefine it so it is more realistic and attainable.


While the specific goalposts employees set for their financial well-being differ across racial and ethnic groups, Americans generally agree about their big-picture financial ideals. Unfortunately, survey results suggest that some underrepresented groups are less likely to feel they have reached those important goals.

Infographic - Financial goals across racial groups
  • Almost two-thirds (64%) of white Americans say they have bought a home compared to only 47% of Hispanic Americans and 35% of Black Americans.
  • Similarly, 46% of white Americans say they’re on track to retire when they want to compared to 27% of Hispanic Americans and 33% of Black Americans.
  • And while Asian Americans feel more confident about having an emergency fund and being debt free, they still lag behind white Americans on home ownership and retirement.

How employers can help

From an employer perspective, understanding employee progress towards their goals can serve as guideposts for financial well-being offerings. They can help prioritize what financial education, advice and resources may help the most.

And whereas more than six in 10 people of color want help on their financial wellness journey, employers’ engagement and advice efforts can fall short if they are not careful to build trust and connect with their audience in an authentic way. Download the research brief to learn more.

Research paper download - Making Financial Wellness Attainable for Everyone

 

Download research paper

 

 

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Complements, not substitutes

Based on this analysis, participants do not consider managed accounts to be substitutes for target date funds.

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