Black Americans feel financially confident, but still need tailored benefits

In the waning days of Black History Month, industry research shows just how far Black Americans have come with regard to pursuing financial security and leveraging their benefits to achieve that goal. But upon closer examination, it appears that more work needs to be done to safeguard their income in the face of rising optimism.

Black households last year expressed slightly more confidence that they would enjoy a financially secure future than they did in 2022, according to LIMRA data from the 2024 Financial Wellness Index. They also were more apt to believe over that two-year period that professional advice was necessary for good financial wellness, that they have the appropriate amount of life insurance and are comfortable with their knowledge of personal finances. In addition, they had higher rates of life insurance ownership than the general population in recent years. 

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Steve Wood, head of market research for LIMRA International, says Black Americans generally express more of a positive outlook than the general population that their financial situation will improve. He cites LIMRA's quarterly consumer-sentiment study, which shows 61% of Black Americans vs. 51% of others adopting that stance. 

While various financial-wellness measures showed improvement among Black Americans, "they're still below the general population," Wood cautions. He notes that they are feeling higher levels of stress than others. Moreover, he says findings from two years ago might not necessarily apply to today or the near future in a rapidly changing world. Another factor is that the experience of consumer markets, particularly in underserved populations, is somewhat in flux these days, he adds. 

The Insurance Barometer Study from LIMRA and Life Happens also notes that Black Americans are very concerned about their ability to save for retirement, support themselves if they can no longer work or amass emergency savings. 

Mindful of these fears, Black Americans recognize the value of workplace benefits. LIMRA found that 74% view them as integral to their financial wellness, while 77% last year said their employers should offer services to help address or reduce employee financial stress, which was up from 69% in 2022.  

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Ed Ligonde, a partner and market director of Nava Benefits, found the research both "encouraging and validating" as both a benefits consultant and Black American.  

"One of the most significant takeaways is the vital role workplace benefits play in this financial confidence," he says. Noting how most respondents view their benefits as key to financial wellness and expect to be armed with financial well-being resources at work, he says, "It's clear that comprehensive benefits can serve as a critical tool for closing long-standing gaps in financial security."  

He's also heartened by the steady and consistent ownership of life insurance among Black Americans, which further underscores the value placed on protecting wealth and future generations. 

Holistic messaging

The challenge for LIMRA member companies moving forward is determining how to strategically target different demographics, but incorporate that messaging into their employer groups overall, according to Wood. "They need to figure out a way to address a company's workforce in a way that reaches Black workers, Hispanic workers and older workers through data and analytics," he says, noting the need to examine trendlines. "That's a growing program at a lot of financial institutions and insurance companies, which is bearing fruit for some of them." 

LIMRA's research suggests that an active social media presence can help connect Black Americans with educational tools or resources. Examples include 52% saying they use YouTube to find financial product-related information and 44% report considering reviews and online comments when evaluating a financial adviser. 

Read more: Making money goals helps employees achieve financial wellness 

When insurance agents or brokers have conversations with the employee populations they serve, Wood suggests that they avoid patronizing audiences. "That doesn't work anymore," he says. "It just has to be part of a holistic part of their whole program and outreach – of the way the company operates." That means constructing a more inclusive, broad-brush approach that also recognizes the need to eliminate jargon for all audiences, he adds. 

It's also best not to wait until open enrollment to educate employees about their benefits and instead get ahead of that event by consistently providing information and communications throughout the year, Wood observes. Since most workers devote less than an hour reviewing their benefits package during open enrollment, he explains that it's not the time to adequately learn about their coverage. 

Continued progress for Black Americans will depend on education, engagement and the right partnerships, according to Ligonde. 

"Financial professionals and employers alike have an opportunity to lean into this momentum, ensuring that benefits strategies are not just comprehensive but also representative of the employees they serve," he believes. "By fostering these initiatives, we can help Black Americans — and all employees — achieve greater financial security in 2025 and beyond."