The Pew Research Center estimates that 31% of the workforce will be Hispanic in 20 years. The Hispanic population offers challenges and opportunities that will not be met just by translating materials into Spanish or offering call centers and enrollers who speak the language. For example, many Hispanic workers don’t even understand the concept of retirement, while others are not comfortable taking any investment risk.
Understanding Hispanic workers also means understanding that there are three different subgroups, according to a blog by Principal:
• Not acclimated or newly immigrated (26%)
• Partially acclimated (63%)
• Mostly acclimated (11%)
Recommended strategies include:
• Think bicultural, not bilingual
• Recreate, don’t just translate
• Keep it simple
• Adjust the message to people who may not understand retirement
• Customize the message by subgroup
For those who see themselves as savers, not investors, TDFs may not make sense. For example, many Hispanic workers, especially those who are not fully acclimated, will not be able to weather difficult investment cycles. For these participants, capital preservation funds might make more sense.
