While the latest NRRI points to a worsening retirement security gap for black and Hispanic American households, it doesn’t address the full extent of the challenges facing black and Hispanic households.
Median income for black and Hispanic households was not only much lower than white households in 2016, it had declined since 2007. Clearly, the income gap between white households and black and Hispanic households has worsened.
The findings of the CRR are consistent with those of Prudential’s Financial Wellness Census ™, which surveyed more than 3,000 adults about their financial health. In the study, blacks and Hispanics reported significantly less retirement savings and are more likely to worry about their financial future. Yet in a bright spot, among households with incomes above $50,000, a greater percentage of black and Hispanic households feel they’re on track to help their children with a down payment of a home, and more are on track to reduce or pay off student loans
Closing the retirement security gap will not be easy, but here are a few things that could help:
- Increase partnering between private corporations and nonprofit institutions.
- Improve access to workplace retirement plans.
- Engage financial services firms in grassroots marketing partnerships, with trusted community leaders.
- Increase access to financial wellness programs.