How 401k Financial Wellness Compares Among Ethnic, Demographic Groups

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How do different groups stack up?

Financial wellness among diverse population is the subject of the latest research from Prudential Financial, which took a look at how various ethic and demographic groups are doing with retirement readiness, income inequality, household debt and more.

The study, titled “The Cut – Exploring Financial Wellness Within Diverse Populations,” found bright spots and areas of optimism within what it calls traditionally underserved groups. It surveyed 3,000 U.S. adults and examines the financial lives of a diverse group of Americans: women, black Americans, Latino Americans, Asian Americans, caregivers, and the LGBTQ community.

It found that the average annual income for women in the survey was $52,521, compared with $84,006 for men—women reported earning about 63 cents for every dollar earned by men.

Additionally, 54 percent of all women reported being the primary breadwinner in their household, irrespective of its makeup.

By significant margins, black Americans at all income levels are more likely than the general population to prioritize helping others financially: taking care of parents or other family members, providing college tuition for their children, helping children with a down payment on a home, leaving an inheritance to their heirs, and giving to charity.

Thirty-eight percent of caregivers in the study do not think they will ever be able to retire versus only 25 percent of non-caregivers.

Although caregivers for children with special needs were as likely as other caregivers and non-caregivers to have a defined contribution retirement plan, they were also the most likely to have taken a loan or hardship withdrawal.

“Resilient and diverse communities are the foundation of a stable and strong economy,” Judy Dougherty, Prudential’s financial wellness officer, said in a statement. “Their progress enables our progress. This new analysis presents a layered portrait of the financial lives of Americans and exposes factors that underlie and sometimes impede our ability to achieve financial security.”

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