Trends in Retirement Security by Race/Ethnicity

A brief from the Center For Retirement Research found massive gaps in earnings and wealth between whites and minorities, with insights into their impact on retirement readiness. Two years ago, the percentage of whites at risk in retirement was 48 percent compared to 54 percent for blacks and 61 percent for Hispanics, smaller than the earnings/wealth disparities. The smaller size of the retirement gap is explained by the fact that minorities have a lower pre-retirement standard of living to maintain. Between 2007 and 2016, the retirement risk for all three groups rose, but the gap between whites and blacks narrowed while Hispanics lagged further behind. The underlying reasons include the drop in earnings among low-income blacks being cushioned by Social Security, while the housing bubble was more difficult for Hispanics to contend with than it was for either whites or blacks.