A considerable opportunity
- The estimated number of people identified as Asian in the United States in 2020 is about 20 million.
- Asian Americans’ average income is higher than any other racial group. The average was $94,903 in 2020.
- Asian Americans hold higher amounts of cash, invest more in real estate, and tend to put more in IRAs and 401(k)s than other demographics.
- More than half of Asians aged 25 and older have a bachelor’s degree or more, compared with 33% of the U.S. population in the same age range.
Annuities and the Asian American community
- Tax-deferral: Because Asian Americans have higher than average incomes during working years and in retirement, this is an important feature. Many Asian Americans continue to work after their retirement age and may also have income from real estate investments. Not having to pay taxes on interest earnings until they receive income payments from their annuity may help them stay in lower tax brackets, pay less tax on their social security and pay less for Medicare premiums.
- Family oriented: About a quarter of Asian Americans (27%) live in multigenerational households. Many Asian Americans feel it is important to leave a legacy for their children and grandchildren. Some annuity features that may be available, such as enhanced death benefit riders, offer the ability to designate specific beneficiaries, or the ability to do a non-qualified stretch, which could be an attractive option.
- Diversification and relative safety: Asian Americans are often heavily invested in real estate. They may have a need for alternative products that can add a different element to their portfolio. Fixed Index Annuities that offer growth potential without the risk of market losses may be an appropriate alternative.
- Guarantees: Many Asian Americans are conservative savers. The potential guaranteed income that annuities may generate may help provide some level of assurance. Annuities may be able to help provide a retirement income base that they can’t outlive.
Take the next step
 2020 Census Illuminates Racial and Ethnic Composition of the Country.
 Income and Poverty in the United States: 2020.
 Nielsen: The Asian American Consumer 2013 Report
 Pew Research Center: 2021 Key facts about Asian Americans, A Diverse and Growing Population
United States Life Tables, 2019
 Pew Research Center: Key Facts About Asian Americans 2021.
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