Huge Racial Gap in Retirement Savings
Report Finds Huge Racial Gap in Retirement Savings
White workers have nearly five times as much wealth in retirement savings as their black counterparts, according to a new report from the Economic Policy Institute. The report finds that as 401(k) plans largely replaced pensions over the last 30 years, the proportion of black workers participating in an employer-sponsored retirement plan fell sharply. In 2013, white workers had on average almost $100,000 more in retirement savings than their black counterparts. The authors argue that 401(k) plans and IRAs are beneficial primarily to already wealthy families and that they exacerbate racial wealth inequality.