sales and marketing

By Julie Britt

NICHE MARKETS

Targeting the Hispanic Market

Offer retirement solutions to Hispanics who lack access to
employer-sponsored plans.

o matter where you live

and work, you've probably
noticed the sharp increase in
the Hispanic population in this country, and you may have recognized the
work ethic that many in this population display. Are you also aware that
many of these hard-working folks
lack access to employer-sponsored
retirement plans, as well as the
means to save money on their own?
A new study from the Hispanic
Institute, Hispanics and Retirement: Challenges and Opportunities,
explains why many Hispanic workers
could face a bleak retirement if they
don't get some financial advice and
access to savings plans. That's where
you come in. Are you targeting the
rapidly growing Hispanic market?
"Financial advisors can play an integral role in mapping out a Hnancial
roadmap for Hispanic-Americans,"
says Cathy Weatherford, president
and CEO of the Insured Retirement
Institute (IRl), which sponsored the
study. "While everyone is taking on a
greater personal stake in planning and
saving for retirement, the unique challenges facing this population necessitate an even greater level of selfreliance to secure a sound retirement.
As a financial advisor, by recognizing
these unique challenges and working
with your client to develop a tailored
strategy that works to overcome these
hurdles, your expertise will prove to
be invaluable."
There are more than 48 million
Hispanics in the U.S., and some
three-fourths of them live in California, Texas, Florida, New York, Illinois,
Arizona and New lersey, according
to the U.S. Census Bureau, which
projects there will be 152 million
Hispanics in the country by 2050. By
5 6 ADVISOR TODAY

December 2009

Why Hispanics Need You

Only 41 percent of Hispanic workers said they have saved money for
retirement.
Only 25.5 percent are covered by employer-sponsored retirement
plans, compared to 42.5 percent of whites and 40 percent of blacks.
Almost 80 percent of the Hispanics receiving Social Security benefits
rely on them for at least 50 percent of their retirement earnings.
Hispanics 65 and older receive about $2,124 less in Social Security
earnings than non-Hispanics in that demographic.
Source: The Hispanic Institute

then, Hispanics will account for nearly

30 percent of the population.
Although Hispanics work in all
sectors of the economy, they are more
heavily concentrated in lower-paying
blue-collar jobs, according to the
study. Roughly two-thirds are employed in service-related jobs, while
just 17 percent work in traditionally
higher-paying jobs in the management
sector and other traditional whitecollar industries, the study reveals.
"With only 25.6 percent of Hispanics having access to an employersponsored retirement plan, and more
than 80 percent currently relying on
Social Security benefits to provide at
least 50 percent of their retirement
income, Hispanic workers must take
steps on their own to secure a sound
financial future," Weatherford says.
Pervasive problems
The Hispanic population's retirement hurdles stem from their longer
life spans, lower levels of education,
weaker earning power and a lower
savings level than non-Hispanics,
according to the study. In addition,

the service jobs or small businesses in

which many Hispanics work do not
offer employee-retirement plans. To
make matters worse, many Hispanics don't have the financial literacy to
plan their financial futures on their
own, which opens the door to financial advisors.
Hispanics will need to invest in
multiple retirement vehicles to supplement the Social Security benefits,
which many of them depend on. and
their lower savings rate. "By seeking
out private insured retirement strategies that help guarantee a paycheck for
life, Hispanic workers can take steps
today to create financial peace of mind
in retirement," Weatherford says.
"But with these challenges come
opportunity. The research also shows
that Hispanic-Americans are in need
of more financial literacy, and herein
we find an opportunity. By giving Hispanics the necessary financial advice
and tools, increased knowledge can
bring retirement security," Weatherford says.
For more information, go to www.
paycheckforlife.org/.D

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