Troubling 401(k) Trend for Hispanic Workers

401k, retirement, Hispanics

It's a problem.

Less than 10 percent of small business workers in the five top Hispanic metro areas of the United States have access to employer-sponsored retirement savings accounts.

Additionally, according to a recent study from Finhabits, the states with the largest concentration of Hispanic residents had the lowest participation in retirement savings.

Texas, Arizona, New Mexico and Florida are among the states with the lowest participation rate (under 25 percent) overall.

“We have a retirement savings problem in the U.S. and the data clearly shows a wealth savings gap with Hispanics working at small businesses,” Carlos Garcia, founder and CEO of Finhabits, said in a statement. “Our analysis found a moderate and troubling correlation between retirement savings and the Hispanic population of a city. This will have a long-term impact on the quality of life and the economy.

Garcia called for more aggressive retirement education aimed at the Hispanic community and a “need to leverage technology to enable them to invest in their future easily even when they do not have access to 401(k)s.”

Key findings of the study include:

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