The need for cultural considerations in examining and facilitating Puerto Ricans’ financial retirement planning

Abstract

Although research suggests that ethnicity is one of the variables that significantly affects an individual's preparation for retirement, little systematic effort has been devoted to retire­ment planning among ethnic groups. Puerto Ricans, in particular, have received very little attention.
Yet, the available literature gives evidence of poor planning and lack of financial preparedness for retirement by this population group.

This paper is prompted by research analyses that attribute the poor financial planning for retirement among Puerto Ricans to economic variables. However, economic factors alone do not explain the lack of preretirement planning by most Puerto Ricans. The author explores some key cultural variables that underlie preretirement planning processes and decisions, and that help serve as an alternative explanation for the lack of planning. A bet­ter understanding of the cultural variables discussed in this paper may lead to development of a more sensitive and coherent alternative framework for policy makers and helping pro­fessionals to employ as they work to assist Puerto Ricans to prepare for a reasonably sound quality of life upon retirement.