7. Minority Workers
The research also touched on influences of race and ethnicity on retirement savings.
“Our societal focus on diversity, equity, and inclusion has solidified the imperative for bridging racial inequalities,” said Collinson. “The survey findings reflect the dynamic nature of the workforce, highlight retirement-related similarities and differences, and surface questions for further research.”
The workforce is becoming more diverse, especially among younger generations, a trend that is reflected in workers’ ages across race and ethnicity. Among the survey respondents, white workers are older than Asian American/Pacific Islander (AAPI), Black/African American, and Hispanic workers (age 44, age 40, age 34, age 34, respectively) (medians).
Contextually, a worker’s age and household income are major contributing factors to their retirement savings. AAPI workers report the highest household income at $100,000, followed by White ($92,000), Hispanic ($70,000), and Black workers ($59,000) (estimated medians).
Black workers are more likely than AAPI, Hispanic, and White workers to be offered a 401k or similar plan by their employer (80%, 76%, 73%, 71%, respectively). However, among those offered a plan, Black workers are less likely than other races/ethnicities to participate in the plan (65%, 78%, 79%, 80%).
AAPI workers have saved the most in total household retirement accounts, followed by White, Hispanic, and Black workers ($105,000, $86,000, $45,000 $34,000, respectively) (estimated medians).
“Strengthening the U.S. retirement system requires expanding retirement plan coverage, making it affordable for employers to offer benefits and easy for workers to save in the workplace, and ensuring workers of all ages have meaningful employment, income, and incentives to save. It also requires implementing reforms to address Social Security’s funding shortfalls and strengthening safety nets,” said Collinson. “Success can be best achieved by a collaboration among policymakers, industry, academics, nonprofits, employers, and individuals. Every stakeholder plays a vital role in transforming the future.”
The Compendium is the sixth report from TCRS’ 22nd Annual Retirement Survey with other reports featuring analysis about employment situation, the employer’s perspective and employer size, generations and age, gender, and the Saver’s Credit. Visit transamericainstitute.org to view the Compendium and other reports.
SEE ALSO:
• 4 in 10 Women Won’t Retire Until Age 70—If At All
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
