Financial advisors can help underserved Hispanics-and gain clients-by reaching out through schools, community organizations and churches that have already gained the community's trust, experts say.
"This is a great opportunity for financial advisors," says Arnoldo Mata, the author of a new report on the retirement needs of Hispanics. "Hispanics tend to be very brand loyal and loyal to individuals. If advisors reach out through public seminars at churches and community centers, they can educate people to the needs they may not even know about. Financial literacy also is being taught in schools and if you can reach the students, you can reach the parents."
Only 41% of Hispanic workers in the United States are saving for retirement and only 25% are covered by employer-sponsored retirement plans, according to the report. At the same time, children are becoming less able to take care of retired parents, which is the tradition in Hispanic households, says Mata, who is research director for the Hispanic Institute.
"Hispanics face greater challenges in preparing for retirement than the average population, [but] with the right tools these obstacles can be overcome," says Gus West, chair of the Hispanic Institute board of directors.
The institute and Americans for a Secure Retirement conducted the study, which will be released at a press conference in Washington, D.C., on Thursday.