Hispanics Feel More Motivated When It Comes to Financial Planning, Says New Lincoln Financial Study

Rhea-AI Summary

Lincoln Financial Group (NYSE: LNC) has released new research indicating that 26% of Hispanic consumers feel motivated about financial planning. Despite this motivation, 73% prioritize immediate expenses over long-term financial goals. Key findings include 39% aiming to save for emergencies and 67% reassessing their financial future due to the COVID-19 pandemic. Experts recommend setting savings goals, prioritizing financial planning, and consulting professionals to improve financial outcomes. Lincoln Financial aims to support Hispanics with tools and education for better financial security.

Positive

• None.

Negative

• 73% of Hispanic consumers prioritize day-to-day expenses over financial planning.
• Half are concerned about paying their mortgage or rent and monthly bills.
• 61% of Hispanics worry about job loss support compared to 50% of the total population.
• 58% have concerns about debt repayment versus 50% of the total population.

Yet, Most Hispanic Consumers Prioritize Immediate Expenses Over Longer-Term Financial Goals, Prompting Tips to Transform Aspirations into Action

RADNOR, Pa.--(BUSINESS WIRE)-- New research from Lincoln Financial Group (NYSE: LNC) shows Hispanics are the most likely demographic (26%) to say they feel “motivated” when thinking about financial planning in the current environment. According to the company’s monthly Consumer Sentiment Tracker, the Hispanic population is also well-intentioned when it comes to financial planning:

• Saving for emergencies is the top financial goal (39%)
• Planning for the future is important (78%)
• The COVID-19 crisis has them thinking differently about their financial future (67%)

However, a gap exists when it comes to transforming these aspirations into action. Nearly three quarters (73%) of Hispanic consumers prioritize day-to-day expenses over planning for their financial future with at least half concerned about how to pay their mortgage or rent and their monthly bills. Additionally, Hispanics have greater concerns than the total population about supporting themselves and their families if they lose a job (61% versus 50%) and paying off debt (58% versus 50%).

“Throughout the past year, we have championed research that enables us to gain valuable insight into the specific financial experiences and behaviors within our diverse communities, especially given the impacts of COVID-19,” said Elena French, senior vice president, head of Corporate Marketing, Communications and Brand. “Our latest study shows Hispanics are engaged in finances, but still face residual challenges from the pandemic. This underscores the need to develop a holistic financial plan, one that sets realistic goals and objectives to work toward from a budgeting and saving perspective.”

When asked what financial actions they would like to take in the next three months, about one-third of Hispanics expressed interest in adding to emergency savings and putting together a plan to pay down debt.

“While it’s encouraging that Hispanic consumers recognize the value of strengthening their financial security, this is just an important first step in a transformative journey,” said Linda Corujo Ramsey, CRPC®, ChFC®, president of Linda Corujo Retirement Center based in San Juan, Puerto Rico, and a registered representative of Lincoln Financial Securities. “We want to ensure Hispanics — and all Americans — have access to and are leveraging the tools, knowledge and education that will enable definitive progress when it comes to prioritizing retirement, protecting families against the unexpected, and creating the lifestyle they envision for the future.”

For that reason, Corujo Ramsey recommends several tips to help Hispanic consumers create positive financial outcomes:

1. Set a Monthly Savings Goal. Evaluate your monthly expenses against your monthly income, then commit to setting aside a monthly amount with which you feel comfortable. It does not have to be large. Many people consistently put off saving because they want to start when they can set aside a certain dollar figure that feels more substantial, but it is important to start now. In time, you might be surprised by how much your initial amount will grow. Also, take advantage of financial wellness solutions offered by your employer to help assess and address any financial issues you may be dealing with like credit card debt, student loans, and saving for retirement, and tap into online calculators and others tools too.

2. Prioritize Creating a Financial Plan. Feel empowered to take the initiative to review your own financial situation and do it frequently, especially by having conversations with your loved ones. View a financial plan as a blank canvas where you are the artist who creates the final painting – you are in charge of your own future. Above all else, increase your emergency funds. It might sound simple, but when times are challenging, it is so much easier to have a financial cushion to fall back upon.

3. Meet with a Financial Professional. Consider meeting with a financial professional who can provide personalized advice that meets your individual needs. Take the time to find the right professional— someone who will protect your finances and the future of your loved ones. Additionally, openly discuss your budget and financial goals with your advisor to create that holistic financial plan. Think of this as a financial roadmap to reach your destination more easily.

For more information, tools and resources, visit www.lfg.com.

About Lincoln Financial Group

Lincoln Financial Group provides advice and solutions that help people take charge of their financial lives with confidence and optimism. Today, more than 17 million customers trust our retirement, insurance and wealth protection expertise to help address their lifestyle, savings and income goals, and guard against long-term care expenses. Headquartered in Radnor, Pennsylvania, Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. The company had $324 billion in end-of-period account values as of June 30, 2021. Lincoln Financial Group is a committed corporate citizen included on major sustainability indices including the Dow Jones Sustainability Index North America and FTSE4Good. Dedicated to diversity and inclusion, we earned perfect 100 percent scores on the Corporate Equality Index and the Disability Equality Index, and rank among Forbes’ Best Large Employers and Best Employers for Women, and Newsweek’s Most Responsible Companies. Learn more at: www.LincolnFinancial.com. Follow us on Facebook, Twitter, LinkedIn, and Instagram. Sign up for email alerts at http://newsroom.lfg.com.

LCN: 3748001-090721

View source version on businesswire.com: https://www.businesswire.com/news/home/20210928005693/en/

Media:

Holly Fair

Lincoln Financial Group

484-583-1632

Holly.fair@lfg.com

Source: Lincoln Financial Group

FAQ

What does the Lincoln Financial Group research reveal about Hispanic consumers' attitudes towards financial planning in 2023?

The research shows that 26% of Hispanic consumers feel motivated about financial planning, but 73% prioritize immediate expenses over long-term goals.

What are the main financial goals of Hispanic consumers according to Lincoln Financial Group's recent study?

The main financial goals include saving for emergencies (39%) and planning for the future (78%).

How has COVID-19 affected Hispanic consumers' financial perspectives according to Lincoln Financial Group?

67% of Hispanic consumers are reassessing their financial future due to the impacts of the COVID-19 pandemic.

What financial advice does Lincoln Financial Group provide for Hispanic consumers?

Lincoln Financial Group recommends setting monthly savings goals, prioritizing financial planning, and consulting with financial professionals.

What concerns do Hispanic consumers have regarding job loss and debt according to Lincoln Financial Group's findings?

61% of Hispanic consumers are concerned about supporting themselves and their families if they lose a job, and 58% worry about paying off debt.