2016 Prudential Research ASIAN AMERICAN FINANCIAL EXPERIENCE

Transcription

1 2016 Prudential Research ASIAN AMERICAN FINANCIAL EXPERIENCE

2 KEY FINDINGS ASIAN AMERICANS FINANCIAL 33 % ARE CAREGIVERS FOR FAMILY MEMBERS The Asian American financial experience is influenced in almost every respect by the importance of family. For many in the Asian American community, financial decisions are weighed against or influenced by their responsibilities to and aspirations for their families, including not just their children but also their parents, grandparents and other extended family, according to survey respondents. Twenty-five percent of Asian Americans surveyed say taking care of family members is a financial priority, versus 15% of the general population. Their words are backed by their actions: One in five Asian Americans responded that they provide financial assistance to relatives, and one in three act as caregivers for someone other than their children. $87K MEDIAN HOUSEHOLD INCOME Many Asian Americans have the financial wherewithal to take on those family responsibilities. Asian Americans surveyed have median household income of $87,000, versus $62,000 in the general population. Excluding their primary residence or any business they might own, Asian Americans estimate the value of their household financial assets at $445,600 on average, versus $385,500 for the general population. 1 in 3 OWN INDIVIDUAL STOCKS Asian Americans are more inclined than the general population to own individual stocks and buy or trade them online. Nearly one in three Asian Americans surveyed owns individual stocks, compared with only about one in four members of the general population. A quarter of Asian Americans indicate having bought or traded stocks online within the past year, compared with 16% of the general population.

3 EXPERIENCE BY THE NUMBERS 64.6 AGE THEY EXPECT TO RETIRE Asian Americans plan to retire at age 64.6, on average, or 15½ months earlier than their general population counterparts, who plan to retire at age This reflects an overall higher level of confidence in their financial health. Like most Americans, Asian Americans rank retirement-related goals as their top financial priority. 69 % VIEW THEMSELVES AS NOT WELL PREPARED TO MAKE FINANCIAL DECISIONS Asian Americans are relatively confident about their financial health and prospects, but slightly less likely than the general population to view themselves as financially knowledgeable. Only 31% consider themselves very well prepared to make financial decisions, essentially in line with the 33% of the general population who feel the same. The most common reason Asian Americans cite for not being prepared to make financial decisions is not consulting a financial professional, followed by being unsure about what to consider when evaluating their options, not knowing what options are available to them, and not having enough education on managing personal finances. FEWER THAN 1 in 5 WORK WITH A FINANCIAL PROFESSIONAL Relatively few Asian Americans engage a financial professional for help although 43% are willing to consider it. Just 18% work with a financial professional right now, compared with 26% of the general population. The reasons they selected include fees are too high, I don t feel I have enough assets and I prefer to do it on my own. More so than the general population, though, Asian Americans responded that they have never found one I can trust.

4 Foreword Prudential s newest and largest study of the Asian American and Pacific Islander 1 financial experience provides fresh insights into the nation s fastest-growing population segment. It is a community that is culturally diverse Asian Americans originate from more than 40 countries, include native Hawaiians and other Pacific Islanders, and speak dozens of languages. However, study results indicate that they are united by a shared focus on the financial progress, stability and security of the extended family. Asian Americans wrestle with many of the same financial challenges as the general population: funding a secure and independent retirement, managing medical expenses, and, somehow, simultaneously setting aside money for emergencies and sending children to college. The majority of Asian Americans (73%) today are first-generation immigrants. Asian Americans make up a fast-growing segment, and as their numbers have accelerated, so has their social and economic influence. Asian Americans grew from 4.5% of the U.S. population in 2000 to 6.6% by 2014, according to U.S. Census data. During that same period their buying power grew 180% faster than for any other ethnic segment in the U.S. 2 Our survey results show that the need for a nuanced, culturally acute roadmap to helping Asian Americans realize their financial goals has never been greater. Companies that take the time to understand and connect with them will be among those best positioned to serve them. Prudential has long been a champion of diversity, in our workplace and in the marketplace. We are committed to understanding and partnering with the broadest possible cross-section of consumers and communities to help them meet their financial needs and pursue their financial dreams. We are proud to present this study in support of that commitment. Steve Pelletier Executive Vice President and Chief Operating Officer, U.S. Businesses Lata Reddy Vice President of Corporate Social Responsibility and President of The Prudential Foundation 1 For the purpose of this study, the group will be referred to as Asian Americans. 2 The Multicultural Economy: Special Focus on Asian Buying Power by Subgroup in 2014, by Jeffrey M. Humphreys, Selig Center for Economic Growth, Terry College of Business, University of Georgia, September 2014.

5 Asian Americans devote substantial resources to helping family Asian Americans focus on family. Twenty-two percent of surveyed Asian American parents say providing college tuition for their children is highly important to them, versus 14% of parents in the general population. And 25% say taking care of family members is a priority, versus 15% of the general population. Buying a home also is a top goal for 24% of Asian Americans, versus 17% of the general population. 70% of Asian American caregivers pay some or all of the living expenses for the person they are helping, compared to 57% of caregivers in the general population. Asian Americans are more likely to act as caretakers for extended family. Fully a third of Asian Americans surveyed identify themselves as caregivers for another person typically a spouse, parent, other relative or special-needs child compared with 21% of the general population surveyed. Their support doesn t stop with physical help. Seventy percent of Asian American caregivers responded that they pay some of the living expenses of the person they re helping, including 31% who pay all those costs. By contrast, 57% of caregivers in the general population shoulder some of the living expenses of the person they re helping, including 28% who pay all the costs. Asian Americans are significantly more likely to provide housing and financial assistance to their extended family. Thirteen percent of Asian Americans have parents or grandparents living with them, compared with 8% of the general population. And 20% of Asian Americans provide financial assistance to their relatives, versus only 6% of the general population. Ten percent of Asian Americans send money overseas at least once a month with a median send of $400 each time. The Asian American Financial Experience visit 1

6 Some have more resources Asian Americans tend to earn more, and have higher household wealth, in some parts of the country. Asian Americans surveyed have a median personal income of $62,000 and median household income of $87,000, versus $42,000 and $62,000, respectively, for the general population. Asian Americans estimate the value of their household financial assets, excluding their primary residence or a business, at $445,600, on average, compared with $385,500 for the general population. Seventeen percent of Asian Americans about one in every six have at least $500,000 of equity in their homes, compared with 8% of the general population. Of course, all Asian Americans are not the same, and are represented at all levels of the income spectrum. FIGURE 1 Household Income for Asian Americans Survey Participants Income Range 0-$25K 12% $25K-$50K 16% $50K-$100K 30% $100K-$150K 24% $150K+ 18% %87K Medium Income Percent of Asian Americans in income range Household Income for General Population Survey Participants Income Range Chart View 0-$25K 16% $25K-$50K 22% $50K-$100K 34% $100K-$150K 20% $150K+ 10% Table View Percent of General Population in income range FIGURE 2 Geographic Concentration of Asian Americans Location Chart View West 47% Midwest 10% East 24% South 19% Percent in Location Where Asian American populations are concentrated in the East and West income levels are comparable to those of the general population. Chart View Table View Table View FIGURE 3 Median Household Income by Region Location Asian American General Population East $109.2K $95.1K West $96.1K $87.4K Midwest $90.7K $66.8K South $84.8K $69.1K %62K Medium Income Geography and education contribute to higher income levels. A variety of factors may play into the income disparities between Asian Americans and the general population. By a substantial margin, Asian American households tend to be concentrated in the East and the West, where wages (along with living expenses) tend to be higher than they are in the Midwest or the South. Nearly half 47% of Asian Americans reside in the West, versus 24% of the general population. In addition, Asian Americans are more likely to have higher levels of education, with 38% holding a bachelor s degree versus 26% for the general population. Asian Americans also are more likely to hold professional, managerial or administrative jobs that tend to pay more than other positions (55% hold such jobs, versus 47% for the general population). When financial hardship strikes, Asian Americans are more confident of being able to handle it. Thirty-six percent of those surveyed say they could maintain their current lifestyle for a year or more if their household lost all its regular monthly income, versus 27% of the general population. Along these same lines, only 20% of Asian Americans say they live paycheck to paycheck, versus 32% of the general population. More than a third of Asian Americans say they could maintain their current lifestyle for a year or more if their household lost all of its regular monthly income. 2 Prudential Financial

7 Retirement is the top financial priority Like the U.S. general population, Asian Americans rank retirement-related goals as their top financial priorities. Having enough money to maintain their lifestyle throughout retirement, being able to cover unexpected medical costs, and not becoming a financial burden to their loved ones are among the top three priorities for both groups. (See Figure 4) The two groups diverge, though, on goals relating to debt and family issues. While 43% of the general population responded that reducing personal debt is a top priority, only 35% of Asian Americans surveyed share that concern (the data shows that Asian Americans are less likely to have onerous credit card debt, medical debt or auto loans). Conversely, a slightly higher percentage of Asian Americans than non-asian Americans rate several family-related financial goals as very important: having enough life insurance to protect loved ones, helping to take care of parents or other family members, and buying a home and providing college tuition for children. The research surfaced one outlier among the priorities: maintaining a standard of living for my family if something were to happen to me. Just 30% of Asian Americans rate that a top goal, compared with 35% of the general population. While 43% of the general population says reducing personal debt is a top priority, only 35% of Asian Americans share that concern. Financial priorities appear to shift with age. Younger Asian Americans survey respondents are more focused on debt reduction and nest building (buying a home, building an emergency savings account), while older Asian Americans are primarily concerned about sustainability (maintaining their lifestyle in retirement, covering medical costs) and self-reliance (not becoming a burden, not outliving savings). Chart View FIGURE 4 Financial Priorities Table View Financial Priorities Asian American General Population Having enough money to maintain my lifestyle throughout retirement 49% 56% Not becoming a financial burden to my loved ones 38% 40% Having enough money to cover an unexpected medical cost 38% 42% Making sure I do not outlive or fully spend all my savings 36% 38% Reducing my personal debt 35% 43% Maintaining standard of living for family if something were to happen to me 30% 35% Protecting investments and retirement savings from market volatility 26% 27% Having enough life insurance to protect my loved ones 22% 25% Helping to take care of my parents or other family members 15% 25% Buying a home 17% 24% Saving for a major purchase other than a home (e.g., car, etc.) 19% 23% Providing college tuition for my children 14% 22% Passing on money as an inheritance to my children/heirs 20% 21% The Asian American Financial Experience visit 3

8 Asian Americans are relatively confident they ll achieve their financial goals Asian Americans believe they ll be able to retire more than a year earlier than the general population. Reflecting a general confidence in their financial health, Asian Americans surveyed plan to retire at age 64.6, on average, a difference of 15½ months compared with their non-asian American survey participants, who on average plan to retire at age They re also less likely to think they ll need to supplement their income in retirement with part-time work (25% of Asian Americans have plans to do so, versus 38% of the general population). Among Asian Americans aware of how much income their workplace retirement plans will generate, 74% feel they are on track to meet their retirement goals. Higher levels of financial assets, and greater access to workplace retirement savings plans, may contribute to Asian Americans confidence about retirement. In addition to having higher levels of household financial assets, Asian American respondents are more likely than the general population to have access to a retirement savings plan at work: 76% versus 66%. What s more, 58% of those with access to a workplace plan contribute to it at a percentage equal to or greater than the amount their employer matches. Asian Americans also feel better about their overall financial health. A solid majority (58%) of Asian Americans feel they are better off financially than their parents were at the same age, versus 49% of the general population. Similarly, 56% of Asian Americans say they are better off today than they were five years ago, versus 45% for the general population. However, the two groups are about equally optimistic about the next generation; 59% of Asian Americans and 57% of the general population say their children will be better off than they are. Family relationships and support remain important in retirement Asian Americans are more likely to move in with family or friends in retirement. While the vast majority 91% intend to live independently, meaning alone or with a spouse or partner, that s still significantly lower than the 96% of the general population that plan to live independently in retirement. Among Asian Americans, 3% say they plan to move in with children, 4% with other relatives, and 1% with friends. Few expect to receive direct financial assistance from family in retirement. Only 4% of Asian Americans plan to receive assistance from their children in retirement, and 4% from other family members. That s not much different than the 3% and 6% of the general population, respectively, who expect to receive such support. A significant number of Asian Americans plan to spend at least a portion of their retirement years outside the U.S. While 79% say they plan to live primarily in the U.S. in retirement, 7% say they will live primarily in another country and 14% say they will split time equally between the U.S. and another country. This trend is even more pronounced among younger Asian Americans. Nearly one in four 21% of Asian Americans say after they retire, they plan to split time equally between the U.S. and another country or live primarily in another country. 4 Prudential Financial

9 Product ownership reveals a consumer group with diverse assets Asian Americans are more likely than the general population to own individual stocks. Like the general population, Asian Americans own a broad variety of financial products. One way they stand out: 29% of Asian Americans own individual stocks, compared with 23% of the general population. Also, 26% of all Asian Americans say they have purchased or traded stocks online in the past year, compared with 16% of the general population. Chart View FIGURE 5 Product Ownership Table View Product Ownership Asian American General Population Checking, savings, money market accounts, or certificates of deposit 68% 77% Health insurance provided/purchased through a place of employment 47% 49% Employer-sponsored retirement plan/defined contribution plan 37% 38% Individual retirement accounts (IRA, SEP, KEOGH or ROTH, etc.) 36% 39% Individual stocks 23% 29% Life insurance purchased outside of a place of employment 28% 33% Life insurance provided/purchased through a place of employment 27% 30% Mutual funds or exchange traded funds, other than a retirement plan 20% 22% Employer-provided benefits (pension, cash balance/defined benefit plan) 18% 23% Health insurance purchased outside of a place of employment 15% 19% Disability income insurance through a place of employment 14% 15% Estate plans, trusts or written wills 14% 19% Education investment accounts (529, Coverdell, UGMA) 7% 11% Long-term care insurance through a place of employment 9% 11% Individual bonds 8% 10% Fixed or variable annuity 6% 9% Disability income insurance provided/purchased outside a place of employment 5% 8% Other 1% 2% None of these 8% 10% The Asian American Financial Experience visit 5

10 Asian Americans debt profile is similar to the general population Nearly equal proportions of Asian Americans and the general population carry debt. Overall debt levels are comparable, too. Asian Americans are less likely to carry certain types of debt, though, including credit card debt. Only 38% of Asian Americans surveyed responded that they carry credit card debt, compared with 48% of the general population. Asian Americans also are less likely to have medical debt (7% of Asian Americans, versus 12% of the general population), and auto loans (30% versus 36%). Mortgage balances are higher. By contrast, reflecting the higher housing costs in the East and West where the majority of them reside, Asian Americans tend to have higher mortgage balances (7% have mortgage balances of $500,000 or more, versus less than 1% of the general population). They see a need to improve their financial literacy For all their confidence in their financial health and outlook, Asian Americans do not feel any more financially savvy than their general population counterparts. In fact, only 31% of Asian Americans surveyed feel they are very well prepared to make financial decisions, similar to 33% of the general population. And 43% responded they re either beginners or, if not, still need to increase their knowledge in many areas. Chart View FIGURE 6 Preparedness in Making Financial Decisions Level of Preparedness Asian American General Population Very well prepared 31% 33% I need help in a few selected areas or topics I need to increase my knowledge in many areas I m a beginner and need to gain a lot of knowledge and experience Table View 26% 29% 31% 27% 12% 11% Asian Americans are most confident in their knowledge of managing household expenses and budgets, managing money and managing debt and least confident about leaving money for the next generation. This mirrors the general population. But compared to the general population, a smaller percentage of Asian Americans are confident about managing household expenses and budgets (68% versus 78%) or dealing with life insurance (45% versus 52%). Knowledge levels also start to wane for both when it comes to less routine financial needs, such as planning for income streams and covering medical expenses in retirement, investing, and planning for succession of wealth. A variety of factors play into the feeling of not being prepared to make financial decisions. Presented with a dozen possible reasons for not feeling prepared to make financial decisions, more Asian Americans (31%) chose I have not consulted with a financial professional than any other selection. Other top factors included not being sure what to consider when evaluating options (cited by 27%), not knowing what options are available to them (24%), and not receiving enough education regarding managing personal finances (21%). 6 Prudential Financial

11 Asian Americans are more avid consumers of financial information Asian Americans are more inclined to seek out information before making financial decisions. Not only do they consult a higher number of resources than the general population (5.8 average resources versus 4.1), they also demonstrate a higher propensity to consume information from less traditional sources, such as clubs, social media and faithbased resources. (See Figure 7) Family members are the preferred source of financial information. Family members are cited as the preferred source of financial information by 44% of Asian Americans, followed by friends (37%), financial professionals (36%), and employers or employer-sponsored resources (35%). Chart View Table View FIGURE 7 Sources of Information for Financial Advice Friends/Family Asian American (5.8 average resources) General Population (4.1 average resources) Family 44% 37% Friends 37% 26% Spouse/partner 34% 32% Coworkers 19% 9% Industry Pros Asian American (5.8 average resources) General Population (4.1 average resources) Financial professionals 36% 29% Employer or employer-sponsored resources 35% 27% Financial company websites 35% 22% Materials from financial companies 28% 22% Well-known financial experts in the media 26% 21% Financial planning site or apps (e.g., Mint or Learnvest) 23% 17% Financial seminars or conferences 23% 11% Advertising or marketing materials 16% 8% Banks/Credit Unions Asian American (5.8 average resources) General Population (4.1 average resources) Local bank 27% 23% Credit union 19% 19% Media Asian American (5.8 average resources) General Population (4.1 average resources) Newspapers and magazines 31% 25% Books on financial topics 25% 19% Ratings or reviews on blogs/user groups 20% 11% Social media (e.g., Facebook, Linkedin, etc.) 18% 10% Club Asian American (5.8 average resources) General Population (4.1 average resources) Investment club 13% 4% Lending circle/savings circle 11% 5% Money club 11% 3% Other Asian American (5.8 average resources) General Population (4.1 average resources) Government agencies 20% 16% Faith-based organization 13% 8% Community center, club, or group 12% 4% Other 5% 4% The Asian American Financial Experience visit 7

12 Few Asian Americans engage financial professionals Relatively few Asian Americans seek the help of a financial professional, but many are open to the idea. Only 18% of Asian Americans currently work with a financial professional, compared with 26% of the general population. But many 43% are open to the idea given the right circumstances. Asian Americans who responded that they use a financial professional feel much more knowledgeable on financial issues than those who said they do not. However, as those working with financial professionals also index higher on wealth and wanting to maximize the growth of their investments, causality is hard to determine. Moreover, 63% of those who are financially very well prepared report that their own current financial situation is better than it was five years ago, while 54% of those who need limited financial help, 39% who need extensive help, and 33% of financial beginners feel this way. Only 18% of Asian Americans work with a financial professional, although 43% of those who don t are open to the idea. Age, wealth, birthplace and language all influence the decision to use a financial professional. Older and wealthier Asian Americans are more likely to be working with a financial professional than younger Asian Americans. However, among all who do not, younger Asian Americans are more willing to consider it than their older counterparts. Those who do work with a financial professional are more likely to have been born in the U.S. (23%, versus 16% who were not) and speak English (20%, versus 7% who do not). Chart View Table View FIGURE 8 Using a Financial Professional Comparing Generations Generation Currently Use Would Consider Using Millennials 12% 53% 35% Gen X 14% 47% 39% Boomers 28% 30% 42% Don t Use/ Wouldn t Consider Using Investing and retirement planning are the top two reasons for using a financial professional. This is true for Asian Americans and the general population. Of those who use a financial professional, 78% of Asian Americans and 74% of the general population are getting help with investments, and 60% and 63%, respectively, are getting help with retirement planning. Trust is a notable stumbling block to hiring a financial professional Fees and a DIY mentality plus trust are key barriers to using a financial professional. Among Asian Americans and the general public, reasons for not using a financial professional include commonly cited examples such as fees are too high (34% of Asian Americans and 35% of the general population), I don t feel I have enough assets (28% versus 37%), and I prefer to do it on my own (28% versus 35%). Among Asian Americans, however, I have never found one I can trust is also a strong reason for not using a financial professional, cited by 21% of those surveyed. This is significantly higher than the 13% of the general population who cite this. Convincing these Asian American consumers to consider a relationship with a financial professional will be tricky, though, as those Asian Americans with the least amount of trust are also most likely to think fees are too high (48%). One in five Asian Americans say they have never found a financial professional they trust. To earn their trust, Asian Americans advise financial professionals to treat them with respect and follow through on their promises. Asian Americans and the general population alike say the best ways for financial professionals to build trust is by treating clients with respect and being someone who is reliable and follows through on their promises. A significant percentage of both groups also advise financial professionals to be upfront and transparent, and provide information appropriate for the client s level of financial experience and knowledge. Overall, though, financial professionals may find it more difficult to build trust with Asian Americans than the general population: Asian Americans surveyed identify significantly fewer measures financial professionals could take to build trust 6.9 on average, versus 8.6 for the general population. 8 Prudential Financial

13 APPENDIX A Key differences among major Asian American subgroups Although this paper covers the financial experience of the Asian American community as a whole, there are important differences between the various subgroups that make up the Asian American population. Listed below are key areas where each of the six largest subgroups participating in the survey differ notably, relative to all Asian Americans, based on responses to survey questions. Chinese Americans Demographics On average a little older Less likely to have children Less likely to have larger households Financials With higher-than-average education levels and more professional careers, tend to have higher incomes, higher asset levels and greater equity in their homes Less likely to be living paycheck to paycheck, and thus confident they could sustain their household longer in the event of income loss Self-described savers, with more knowledge about debt management and investing Own a greater diversity of financial products, with highest levels of investment in individual stocks and retirement plans, and more likely to trade stocks online In retirement, more likely to expect to rely on personal investments and savings Indian Americans Demographics More likely to be born outside the U.S. Significantly more likely to report being married Financials With higher-than-average education levels and a higher proportion of professional jobs, tend to have higher income levels Less likely to be living paycheck to paycheck, and able to sustain their household longer in the event of a loss of income More likely to describe themselves as savers, and to report the highest levels of knowledge regarding all financial topics More likely to provide caregiving for others and support others outside the country More likely to care that their financial professional was recommended by a religious or community source, and more likely to attend religious services at least monthly Vietnamese Americans Demographics Less likely to have children More likely to have smaller households Financials Largely in line with the average Asian American Filipino Americans Demographics Households tend to be larger than average Households more likely to include extended family members Financials Tend to carry more types of debt, including a higher volume of credit card debt and as such have debt reduction as a higher priority More likely to be working in a mix of manual and professional careers In retirement, more likely to plan to work to supplement income, and more likely to say they will spend their time equally in the U.S. and their native country Obtaining insurance, so as not to be a burden to others, is a higher priority Much more likely to attend religious services at least weekly Korean Americans Demographics Youngest Asian American group Financials Less likely to be living paycheck to paycheck but more likely to expect to be working to supplement income in retirement and to be receiving support from family in retirement Less likely to be financially supporting others outside the country or to be caregivers for others Japanese Americans Demographics Older on average, and perhaps as a result least likely to have children and more likely to have smaller-size households Most likely to be born in the U.S. Financials While generally optimistic in outlook regarding themselves, less likely to think the next generation will be better off Less likely to be living paycheck to paycheck, and believe they are able to sustain their household longer in the event of a loss of income Less likely to carry the burdens of supporting family or others outside the country Less likely to be caregivers Less likely to report regular participation in a religious service The Asian American Financial Experience visit 9

14 About the Prudential research Methodology The Asian American Financial Experience survey was conducted online within the United States by Harris Poll on behalf of Prudential from June 19 to July 21, Survey Sample Size = 2,597 Americans 2,097 self-identified as Asian American 500 General Population The research, which covered a broad range of financial topics, surveyed U.S. residents ages The survey was designed to broadly represent characteristics of the just over 11 million Asian Americans (ages 25 to 70) in the United States. It is important to note, however, that the Asian American community is composed of a number of different ethnic groups with unique cultural experiences, traditions and history. (See Figure 9) Notes All results shown are percentages unless otherwise labeled. Percentages may not add up to 100 due to rounding and to multiple responses being allowed for some questions. In this report, we use the term Asian American to describe respondents who self-identified as Asian American. Results of the survey reflect broad generalizations, averages and only some of the characteristics of the broadest depiction of the Asian American community, as defined in the U.S. Census. As such, results or analyses do not necessarily describe some or all of the groups that comprise that community. Prudential recognizes that substantial variations in individual experience exist, and this survey should not be used as a basis for assuming that all Asian American consumers have the characteristics cited. (See Appendix A.) The term caregiver was defined in the survey as someone who is responsible for taking care of another person and is engaged in care-related activities for this person, such as taking them to the doctor, making medical decisions, or providing financial support. The person being cared for may or may not live with the caregiver. More information and survey results can be downloaded at prudential.com/asianamerican. Sample Source Respondents for this survey were primarily selected from among those who have agreed to participate in surveys from Harris Poll or sample partners. A small number of respondents was recruited to a central location and then completed the survey online. Results for each population were calibrated separately (by age, gender, region, income, education and country of birth where necessary) to align them with their actual proportions in their respective populations. All sample surveys and polls, whether or not they use probability sampling, are subject to multiple sources of error which are most often not possible to quantify or estimate, including sampling error, coverage error, error associated with non-response, error associated with question wording and response options, and post-survey weighting and adjustments. Therefore, Harris Poll avoids the words margin of error as they are misleading. All that can be calculated are different possible sampling errors with different probabilities for pure, unweighted, random samples with 100% response rates. These are only theoretical because no published polls come close to this ideal. 10 Prudential Financial

15 FIGURE 9 National Distribution in Population Among Asian Americans Percentage 20% Chinese (including Taiwan and Hong Kong) 18% Indian 16% Filipino 11% Vietnamese 9% Korean 6% Hawaiian/Pacific Islander 5% Japanese 16% Other Asian Source: Current Population Survey, March 2014 (A Census Bureau publication) *Other Asian countries include Bangladesh, Cambodia, Indonesia, Laos, Malaysia, Pakistan, Singapore, Sri Lanka and Thailand. Asian Americans FIGURE 10 Household Composition General Population 40% 38% No children 60% 62% Have children Average no. of children Average no. of people in HH Asian Americans FIGURE 13 Age General Population 14% 12% % 23% % 22% % 33% % 10% yrs 47 yrs Mean FIGURE 14 Language Most Spoken at Home Asian Americans 86% English 29% English only 27% English mostly 30% English and another language equally 14% Another language 11% Mostly another language 3% Don t speak English FIGURE 11 Education Asian Americans General Population 17% 33% High school or less 20% 28% Some college 38% 26% Four-year college 24% 14% Graduate degree FIGURE 12 Marital Status FIGURE 15 Years Living in the United States Asian Americans 1% Less than 1 year 7% 1 to 5 years 10% 6 to 10 years 18% 11 to 20 years 48% More than 20 years 17% My whole life Asian Americans General Population 69% 69% Married/Living with partner 8% 13% Widowed/Divorced/Separated 22% 19% Never married The Asian American Financial Experience visit 11

16 The Prudential Insurance Company of America and its affiliates, Newark, NJ. Prudential, the Prudential logo, the Rock symbol and Bring Your Challenges are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide