Asian Americans Most Worried About Lost Income as a Result of COVID-19, Says New Lincoln Financial Study
May 13 2021 - 1:00PM
Business Wire
One-Third Paused All Financial Actions in the
Wake of the Pandemic, but Financial Planner Martin Fong Recommends
Three Steps to Start a Path to Financial Wellness
According to Lincoln Financial Group’s (NYSE:
LNC) Monthly Consumer Sentiment Tracker, Asian Americans (37%) are
most worried about lost income from layoffs and reduced employment
hours as a result of COVID-19—a fear that is not unfounded in a
population hit especially hard by the economic crisis. A McKinsey
& Co. analysis reported the unemployment rate among Asian
Americans jumped more than 450% between February and June 2020,
outpacing the rate of other ethnic groups. Almost a quarter of
employed Asian Americans work in sectors hit hard by the pandemic
like hospitality and leisure, retail or industries like personal
care, according to a July 2020 UCLA report that also noted 28% of
Asian American small businesses closed between February and April
2020.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20210513005805/en/
Martin Fong is a financial planner at
Acord & Fong Wealth Strategies and a registered representative
of Lincoln Financial Advisors (Photo: Business Wire)
Lincoln’s research found that the majority of Asian Americans
(82%) are looking for ways to better protect themselves and their
families financially, but they are the least likely to be taking
any current steps to do so. Whereas other demographics feel now is
a good time to purchase financial products and increase
investments, one-third of Asian American consumers have taken no
financial actions at all in the wake of COVID-19. Even fewer
numbers are interested in buying long-term care or life insurance
(12%), speaking with an advisor (19%) or increasing their
retirement investments (22%). And while most people have shifted
financial priorities during the pandemic to better fund emergency
savings accounts, Asian Americans did so in much lower numbers
(18%).
“Our research emphasized a real discrepancy among this
demographic as far as their level of financial engagement, even
though they have expressed a desire to tap into financial planning
resources and solutions,” said Elena French, senior vice president,
Corporate Marketing, Communications and Brand for Lincoln Financial
Group. “The socioeconomic landscape is a more complicated one right
now for Asian Americans, which likely contributes to their
conservative approach. With this study, we wanted to understand how
we could better support and connect with Asian American
consumers—as well as other racial and ethnic groups—to help them
create positive financial outcomes.”
The increased spotlight by Asian Americans on pandemic-related
unemployment generates other subsequent financial uncertainties
like the ability to cover unexpected medical (63%) and non-medical
(62%) expenses, which are underpinned by their lower levels of
emergency savings.
An Interest in Financial Guidance
The good news is that while there are financial issues keeping
Asian Americans up at night, these consumers are the most likely to
say they believe they are doing well planning for their financial
future but can still use some help (78%). They are also looking for
and open to financial advice (70%), however, Asian American
consumers are currently more likely to do their own research,
relying on websites (53%) and family/friends/colleagues (43%). They
are the least likely to report a preference for speaking with a
financial professional (28%).
“Increasing your own financial knowledge is an excellent first
step toward feeling more confident and empowered to make important
decisions about your financial future,” said Martin Fong, a
financial planner at Acord & Fong Wealth Strategies and a
registered representative of Lincoln Financial Advisors. “Meeting
with a trusted financial professional also plays a key role in that
consumers have the opportunity to receive guidance specific to
their own unique situation and vision for their financial
future.”
For Asian American consumers who are among those concerned about
unexpected expenses and the impact of the pandemic on their
long-term finances, Fong recommends a few tips to get started on a
path to financial wellness:
- Create a financial plan and live within a budget. For
those who are not ready to meet with a financial professional, try
utilizing online budgeting tools, calculators and other resources
to establish a financial outlook. An understanding of your
financial wellness helps with long-term goals and financial
planning. Then when consumers adopt a personal finance plan and
stick to it, they know their basic needs are covered along with
other financial priorities. Maintaining a budget is hard without
objectives, though. Set a savings goal of a certain amount per
month, reducing the likelihood the money will be spent
elsewhere.
- Automate wherever possible. Automatic withdrawals from a
checking account to a savings account can help those struggling to
save. It removes the stress of remembering to do it monthly.
Regular savings contributions can go a long way toward building a
long-term nest egg, lowering the temptation to use those resources
for luxuries and entertainment.
- Create an emergency fund. Fong recommends setting a goal
to put three to six months of expenses into a savings account to
prepare for any unexpected expenses. An emergency fund provides the
peace of mind and safety net needed to help handle a financial
crisis. Automatic withdrawals can help set aside the money over
time.
For more information on how to protect the ones you love the
most, visit www.lincolnfinancial.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 $311 billion in end-of-period account values as of
March 31, 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-3581853-050621
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210513005805/en/
Media Contacts: Holly Fair
Lincoln Financial Group 484-583-1632 Holly.fair@lfg.com
Lincoln National (NYSE:LNC)
Historical Stock Chart
From Aug 2024 to Sep 2024
Lincoln National (NYSE:LNC)
Historical Stock Chart
From Sep 2023 to Sep 2024