African American
Business Facts

Retirement Racial Wealth Gap Disproportionately Impacts Black, Hispanic Americans

PlanSponsor (06/07/23) Samuels, Remy
Accumulating adequate income in retirement is especially difficult for Black and Hispanic families in the U.S., as the racial wealth gap and inequity in the housing market persists, according to research aggregated by the Wharton School of the University of Pennsylvania. Harvard University professors Karen Dynan and Doug Elmendorf argued that the sharp decline in the share of families who have defined benefit pensions is a major factor contributing to the racial wealth gap in retirement--since defined benefit plans have traditionally provided considerable income in retirement and did not come directly out of an employee's paycheck.