Retirement Racial Wealth Gap Disproportionately Impacts Black Hispanic

Retirement Racial Wealth Gap Disproportionately Impacts Black Hispanic Black and hispanic families in the u.s. disproportionately face inadequate income in retirement. the pension research council’s 2023 symposium “diversity, inclusion, and inequality: implications for retirement income security and policy” discussed factors contributing to the wealth gaps and policy reforms to help reduce it. via plansponsor. Retirement friendly tax reform policies could also benefit minorities. according to “ tax policy to reduce racial retirement wealth inequality,” the typical white household has more non social security retirement wealth ($176,000) than the typical hispanic household ($35,000) and seven times more than the typical black household ($24,300).

Wealth Gap Makes Retirement More Elusive For Blacks Latinos The issue of pay equity is the first set of analysis that has to be explored to understand the impact on savings and retirement in the black community. the data shows this is where the gap starts – during an individuals earning years. the economic policy institute (epi) released a study in 2019 that lifted up the following that black workers. In contrast, just 45% of black families owned a home, with an average net housing wealth of only $94,400, or less than half that of the average white family. housing wealth comprises two fifths of. The shares of hispanic (14%) and multiracial (16%) households with no wealth or in debt were similar in 2021. for these groups, the situation in 2021 was either the same as or an improvement over 2019. white and asian households were the least likely to have no wealth or be in debt in 2021 (9% and 7%, respectively). The median amounts for those households that had any retirement wealth show similar gaps by race and ethnicity (figure 2). importantly, while 76.0% of white households near retirement had any retirement wealth, only 54.9% of black households, 42.4% of latino households, and 62.1% of households of other or multiple races or ethnicities did.

Infographic The Racial Wealth Gap Prosperity Now The shares of hispanic (14%) and multiracial (16%) households with no wealth or in debt were similar in 2021. for these groups, the situation in 2021 was either the same as or an improvement over 2019. white and asian households were the least likely to have no wealth or be in debt in 2021 (9% and 7%, respectively). The median amounts for those households that had any retirement wealth show similar gaps by race and ethnicity (figure 2). importantly, while 76.0% of white households near retirement had any retirement wealth, only 54.9% of black households, 42.4% of latino households, and 62.1% of households of other or multiple races or ethnicities did. In 2021, asian households had a median net worth of $320,900, compared with $250,400 for white households. the median net worth of hispanic households ($48,700) and black households ($27,100) was much less. in dollar amounts, the wealth gap between white households and black and hispanic households increased from 2019 to 2021. In a 2023 report, the government accountability office (gao) estimated that non hispanic, non latino whites aged 51 to 64 had median retirement account balances of $164,361 in 2019 (adjusted in.