Prudential Financial, Inc. (NYSE:PRU) announced today an $850,000 grant in support of the National Council of La Razas (NCLR) Wealth-Building Policy Project, which seeks to strengthen Hispanic communities by preserving and increasing their wealth through research and advocacy. The grant, provided through The Prudential Foundation, will support research that examines Hispanics knowledge, access and use of financial products as mechanisms to build wealth and increase financial security. The research will complement Prudentials study, The Hispanic American Financial Experience,
by addressing information gaps, providing broader insight into the Hispanic community and adding deeper context to the reports findings. The announcement was made at NCLRs annual conference in Los Angeles.
At Prudential, we understand the importance of addressing the financial needs of all communities. The partnership with NCLR is another example of Prudentials commitment to diversity and inclusion, and is an important step towards understanding Hispanic-Americans needs so that the industry can better serve them, said Sharon Taylor, senior vice president, Human Resources, and chair of The Prudential Foundation.
We believe everyone should have the opportunity to achieve economic success, said Lata Reddy, vice president of Prudentials Office of Corporate Social Responsibility and president of The Prudential Foundation. This grant will advance research to help connect Americas underserved communities with the necessary financial services, tools and products that are essential to long-term financial security.
Over the next two years, NCLR will conduct focus groups, analyze and publish findings, and develop and share policy recommendations. The research funded by the grant will focus on California, Texas and Florida, where more than 55 percent of the U.S. Hispanic population resides. It will result in recommendations for increasing financial inclusion among Hispanics and inform policy decisions to advance this goal.
We appreciate Prudentials continued investment in the U.S. Hispanic community, and most recently through their support for the NCLR Wealth-Building Policy Project, said Janet Murguía, president and CEO of NCLR. Together, our important work will set our Latino families on the path to stronger financial security.
Earlier this year, Prudential released The Hispanic American Financial Experience study, conducted among Hispanics with a household income of $25,000 or more. The study found that the Hispanic community is moderately confident in the future outlook for their household finances, the local and national economies, and the attention paid to their needs by the financial industry and government. It also found that the Hispanic community places a priority on funding near-term goals such as supporting their multigenerational families. Factors like these, according to respondents, make it difficult for the Hispanic American community to prepare for long-term financial security.
Additionally, the 2014 study revealed that the complexity of programs such as Social Security, a lack of access to work-based retirement plans and limited contact from financial advisors are additional barriers to achieving long-term financial goals.
With the Hispanic population in the U.S. projected to reach 132.8 millionor 30 percent of the populationby 2050, their socio-economic status and experience will have a significant impact on the countrys future. Twenty percent of Hispanics do not have retirement plans, bank accounts or life insurance. This figure twice is that of the general population, suggesting there is a significant need to connect Hispanics to mainstream financial products and services. Initiatives like this align well with Prudentials three-pillar diversity and inclusion strategy, which focuses on people, the market and the community.
NCLRs Wealth-Building Policy Project seeks to meet the Hispanic communitys need for tangible assets such as home ownership and savings. In addition to conducting research on systemic barriers to inform policy and program decisions, NCLR offers programs that help Hispanics purchase their first home, avoid foreclosure, access their tax refunds and make good financial decisions.
The Prudential Foundation is a nonprofit corporation supported by The Prudential Insurance Company of America, an insurance subsidiary of Prudential Financial Inc. of the U.S. The Prudential Foundation advocates for systemic change focused on eliminating barriers to financial and social mobility in the areas of meeting basic needs, connecting people to quality jobs, building personal assets and transforming communities. As a strategic investor, the Foundation makes long-term commitments that yield tangible results through both grants and program related investments.
Prudential Financial, Inc. (NYSE:PRU), a financial services leader with more than $1.1 trillion of assets under management as of March 31, 2014, has operations in the United States, Asia, Europe, and Latin America. Prudential Financial Inc.s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudential Financial, Inc.s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit www.news.prudential.com.