Black Plague
11-18-2008, 11:07 PM
http://www.consumeraffairs.com/news04/2008/10/retirement_savings02.html
Blacks are on equal footing with whites when it comes to accessing and enrolling in employer-sponsored defined contribution plans, but save far less each month and have a considerably smaller nest egg than their white counterparts, according to the 11th annual Ariel/Schwab Black Investor Survey.
The survey of 503 blacks and 506 whites with household incomes of at least $50,000, finds about nine in ten of both blacks and whites who are working have access to a defined contribution plan such as a 401(k); and of those, about 90% of each group contribute regularly.
However, the median monthly amount that blacks contribute to their 401(k) plan is $169, while whites contribute about 50% more, or $249 each month. As a result, the median total household savings for retirement reported by black respondents is $53,000, in contrast to whites at $114,000.
This year's survey also found that for many younger blacks, saving for retirement is more of a dream than a priority. Although 45 percent of blacks under the age of 50, compared with 26 percent of whites, say they want to retire by age 60, they are half as likely to cite retirement as their most important goal when saving and investing, after controlling for income, education, age and other key demographics. Among those older than 50, however, reality has set in: a far smaller 24 perecent of blacks and nine percent of whites still plan to retire by age 60.
:chmp
Blacks are on equal footing with whites when it comes to accessing and enrolling in employer-sponsored defined contribution plans, but save far less each month and have a considerably smaller nest egg than their white counterparts, according to the 11th annual Ariel/Schwab Black Investor Survey.
The survey of 503 blacks and 506 whites with household incomes of at least $50,000, finds about nine in ten of both blacks and whites who are working have access to a defined contribution plan such as a 401(k); and of those, about 90% of each group contribute regularly.
However, the median monthly amount that blacks contribute to their 401(k) plan is $169, while whites contribute about 50% more, or $249 each month. As a result, the median total household savings for retirement reported by black respondents is $53,000, in contrast to whites at $114,000.
This year's survey also found that for many younger blacks, saving for retirement is more of a dream than a priority. Although 45 percent of blacks under the age of 50, compared with 26 percent of whites, say they want to retire by age 60, they are half as likely to cite retirement as their most important goal when saving and investing, after controlling for income, education, age and other key demographics. Among those older than 50, however, reality has set in: a far smaller 24 perecent of blacks and nine percent of whites still plan to retire by age 60.
:chmp