Retirement Savings Gap in America - 3/18/19
According to data recently made available by the Economic Policy Institute, only twenty six percent of Hispanic families had savings in a retirement plan like a 401k or IRA in twenty thirteen. As reported by CNNMoney, by contrast, sixty five percent of white families and forty one percent of African-American families had retirement accounts.
Accordingly, some analysts indicate that the Hispanic community faces a retirement crisis in the U.S. Part of the reason for this is that many Hispanics, especially those who work in low wage jobs, don’t enjoy access to retirement plans. Immigrant Hispanic workers are particularly vulnerable to such outcomes.
Native-born Hispanics are much more likely to have access to and participate in retirement accounts at rates closer to those of African-Americans. Hispanics also tend to be associated with lower levels of retirement savings. In twenty thirteen, white workers between the ages of thirty two and sixty one reported an average of one hundred and twenty five thousand in retirement savings.
African Americans had less than twenty seven thousand in retirement savings and Hispanics had less than seventeen thousand. Not surprisingly, the retirement savings gap closely mirrors the overall racial wealth gap in America.