Fidelity Investments Publishes New Research on the Financial Wellness of Asian Americans and Pacific Islanders

Fidelity recently conducted research on the financial health and outlook of Asian Americans and Pacific Islanders. The Asian American and Pacific Islanders (AAPI) community includes 75 countries from the Asian continent and Pacific Islands. Six origin groups make up 85% of the AAPI community: Chinese, Indian, Filipino, Vietnamese, Korean, and Japanese. Though they comprised 7.3% of the total United States population in 2023, Asian Americans and Pacific Islanders are the fastest growing racial group in the country and are expected to quadruple by 2060, exceeding 47 million people[i]. The community will reach $1.6 trillion in spending power by 2024[ii].

Here are some of the insights and nuances we uncovered about this growing population:

Positive and Prepared:

• This group of Americans often focuses on saving: 67% of AAPI people say they are happy with the saving habits they have developed (vs. all respondents at 60%).
• Some AAPI people are more likely to have dispensable income. In the past year, members of this community were far less likely to dip into their emergency savings due to a financial setback (just 35% vs. 45% of the total population), and more were likely to have money left over after paying bills and expenses (26% noted excess funds vs. just 21% of the total population).
• AAPI people are preparing for the long term. When asked what motivates them to make financial resolutions, they over-indexed on seeking a comfortable retirement (44% vs. 37% of the total population), and the possibility of retiring early (22% vs. 16% of all Americans).
• Despite positive feelings about their current financial situation, they’re feeling slightly less confident about their overall relationship with money: 12% of AAPI respondents described their relationship with money as “confident” vs. 14% of the total population.

Do-It-Yourself Tech-Embracers: 

• Only 4% of certified financial planners identify as AAPI, making it the smallest ethnic group within the financial planning profession[iii]. Because trust, representation, and awareness of lived experiences are so critical, fewer in the AAPI community are calling on an advisor for financial guidance. Only 17% of AAPI respondents have a paid financial advisor vs. 26% of the general population.
• This community is also less likely to think an advisor could help them. In fact, only 32% strongly agreed that an advisor could help them achieve their financial goals, compared with 41% of the total population.
• More within the AAPI community define themselves as “hands-on” with their finances, particularly women: 19% of AAPI women say they’re hands-on vs. 13% of all women. 
• The study revealed that AAPI people are more likely to do the following things online: seek out financial education (25% vs. 21%), plan for retirement (23% vs. 17%), save for financial milestones like home-buying (21% vs. 15%), and even estate planning (17% vs. 12%). This community is also more likely than the general population to empower Artificial Intelligence and technology to help manage their financial wellness, including setting financial goals (5% vs. 3%) and even estate planning (5% vs. 2%).

Family and Future Focused:

• More AAPI people live in multi-generational households (one-in-three vs. one-in-five[iv]), so it’s not surprising this population is focused on providing financial support across their families (both in the United States and back in their home countries) by providing care for their elders and investing in education for their children.  
• This community is more worried about how to care for their aging parents (29% vs. 23% of the total population).
• Family is also more influential for setting financial goals, with 34% of AAPI people looking to family members for financial resolution inspiration vs. 28% of all Americans.
• This community is also focused on their children’s futures. For this community, education is an investment, not an expense. As opposed to traditional gifts, AAPI respondents would prefer that more funds from family be allocated to a college savings account (73% vs. 66% of the total population).
• The focus on education means that this community was more impacted by student loan payments resuming: 42% of AAPI respondents adjusted their budget due to student loan payments vs. 32% of the total population.
• A focus on learning holds true across all generations. Last year, 47% of the AAPI community made a resolution to seek out educational opportunities vs. 34% of the total population.

Fidelity is focused on opening pathways to financial mobility for all. To do this, the company’s Customer Inclusion Team is tasked with ensuring that its products and services are culturally relevant and applicable across demographics, including the AAPI community. On Wednesday, May 22 at 2pm E.T., Fidelity will host a free event focused on this community with insights and tools for creating a financial legacy for your family.

“The AAPI community is hardworking. We value family and share a desire for visibility, success, and building a better life for future generations,” says Ronita Panda, AAPI Community Lead at Fidelity Investments. “Our work on the Customer Inclusion Team is to create inclusive experiences for our customers that embrace both our heritages and American ways of life.”

Observed annually in May, AAPI Heritage Month is a time to celebrate and recognize the contributions of the AAPI community. Fidelity remains focused on its commitment to providing inclusive experiences by prioritizing a diverse and welcoming workplace culture, offering bespoke tools and resources for emerging communities, and providing financial mobility opportunities to the next generation.

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Unless otherwise footnoted, all datapoints cited are from Fidelity’s New Year’s Financial Resolutions Study

About Fidelity Investments’ 15th Annual New Year’s Financial Resolutions Study

This study presents the findings of a national online survey, consisting of 3,002 adults, 18 years of age and older. The generations are defined as: Seniors (78+)(78 respondents) Baby Boomers (ages 58-76) (758 respondents) , Gen X (ages 42-57) (683 respondents), Millennials (ages 26-41)(1,015 respondents), and Gen Z (ages 18-25)(468 respondents); although this generation has a wider range, we only surveyed adults for the purposes of this survey. Young is defined as those ages 18-35. Interviewing for this CARAVAN® Survey was conducted October 20-29, 2023 by Big Village, which is not affiliated with Fidelity Investments. The results of this survey may not be representative of all adults meeting the same criteria as those surveyed for this study. Go here for more information on Fidelity’s 2024 New Year’s Financial Resolutions Study.

About Fidelity Investments

Fidelity’s mission is to strengthen the financial well-being of our customers and deliver better outcomes for the clients and businesses we serve.  Fidelity’s strength comes from the scale of our diversified, market-leading financial services businesses that serve individuals, families, employers, wealth management firms, and institutions. With assets under administration of $13.7 trillion, including discretionary assets of $5.3 trillion as of March 31, 2024, we focus on meeting the unique needs of a broad and growing customer base. Privately held for 77 years, Fidelity employs more than 75,000 associates across the United States, Ireland, and India. For more information about Fidelity Investments, visit https://www.fidelity.com/about-fidelity/our-company.