Black Americans more optimistic, but still face financial challenges
New research by Limra shows Black Americans hold a more optimistic outlook on the economy and their personal financial futures than the general population.
Citing data from the US Consumer Sentiment Survey, the study said 37 percent of Black adults hold a favorable opinion of the US economy, compared to 30 percent of adults of all other races. Black Americans were also more likely to anticipate improvements this year in terms of economic conditions (42 percent, versus 37 percent in other races) and their personal financial situation (67 percent versus 54 percent).
Limra reported a significant trend among Black Americans toward prioritizing savings, with half placing it among their three top financial goals for 2024. This focus on savings is most typically driven by the desire for a financial cushion against emergencies and unexpected expenses – a concern shared by 57 percent of those planning to save more.
Despite this optimism, Black Americans are also grappling with unique financial challenges. In the 2023 Insurance Barometer study conducted jointly by Limra and Life Happens, Black Americans reported higher levels of financial anxiety compared to the wider population, especially regarding retirement savings.
Additional concerns include the ability to afford medical expenses in the event of illness or injury, maintaining financial independence in case of disability, managing long-term care costs, and saddling others with burial or funeral expenses upon their death.
The studies also showed Black Americans feel less prepared for retirement, with fewer than four in ten believing they have saved enough.
Investment in retirement accounts such as workplace plans or individual retirement accounts remains low among Black adults
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