Retirement Disparities Across Racial Groups

A new study, called 401(k) Plans in Living Color: A Study of 401(k) Disparities Across Racial and Ethnic Groups, resulted in many interesting findings. The study was funded by a Rockefeller Foundation grant and was conducted by a number of organizations including Ariel Education Initiative, the Joint Center for Political and Economic Studies, the National Urban League and the Chicago Urban League.

According to the study, Hispanic and African-American workers contribute less and participate less in 401(k) plans when compared to Asian and white workers. Hispanic and African-American are also more likely to take loan or a hardship withdrawal from their 401(k). When combined, the two obve findings result in Hispanic and African-American workers facing longer odds when it comes to the chances of retiring comfortably.

401(k) Plans in Living Color: A Study of 401(k) Disparities Across Racial and Ethnic Groups used information from the end of 2007 that took a look at nearly sixty of the largest companies in the United States. In all, nearly three million workers were studied.

For more information on this study or to learn about resulting recommendations, visit the HewittAssociates website.

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