Understanding the Diverse Retirement Heritage of the United States Foreign-Born Population

The United States foreign-born population has surpassed 46 million people, bringing with them diverse financial, investment, and retirement heritages. A recent report from the U.S. Census Bureau revealed that the foreign-born population in the country has increased by over 15% between 2010 and 2022, now making up nearly 14% of the total population.

While many of these individuals will become part of the middle market of workers, consumers, and potentially retirees, not all of them share a common retirement heritage. Retirement heritage encompasses the stories, goals, attitudes, and behaviors learned from previous generations about preparing for and living in retirement. However, with the diverse backgrounds of the foreign-born population, there is a wide range of perspectives on retirement.

Financial literacy is crucial for retirement planning, but it often overlooks the cultural nuances that shape individuals’ understanding of retirement. Many foreign-born individuals may not have a traditional retirement heritage, leading to a need for tailored financial planning that respects and integrates diverse perspectives.

As the demographics of the United States continue to change, the financial services industry must adapt to provide culturally competent retirement education and solutions. The growing population of foreign-born individuals presents a significant opportunity for financial services companies, employers, and financial professionals to engage and prepare a new generation of Americans for a financially secure retirement.

With the number of foreign-born people in the U.S. exceeding the entire population of Canada, there is a vast market waiting to be discovered. Understanding and addressing the diverse retirement heritages of this population will be key to ensuring that all individuals can live longer, better, and financially secure lives throughout their lifespan.