Racial Gaps Hurt Retirement Plans

Racial Gaps Hurt Retirement Plans

When it comes to retirement readiness, race and ethnicity matter. And according to a new study, whites are the most prepared.

Research from the National Institute on Retirement Security found that more than 60 percent of white households own assets in a retirement account, while more than 60 percent of Blacks and nearly 70 percent of Latinos do not—and those who have plans have far less in them than their white counterparts.

The average retirement savings for white Americans near retirement age is four times that of Blacks and Latinos ($120,000 vs. $30,000). Roughly 75 percent of working-age (25- to 64-year-old) Black and 80 percent of working-age Latino households have less than $10,000 in their retirement accounts, which include both 401(k) and defined-benefit (DB) pension plans, compared to only about half of whites.

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