Differences in retirement preparedness and security by race and ethnicity
Differences in wealth and income by race and ethnicity are well established. How do these differences affect retirement income security?
Lower incomes mean lower monthly benefits earned under Social Security and a lower capacity to save for retirement. But because of Social Security’s progressivity, lower lifetime earners need to save less than higher lifetime earners to replace a given percentage of pre-retirement income in retirement. This data brief discusses the implications of these and other factors for differences in retirement preparedness and security by race and ethnicity.
The authors examine differences in retirement security by race and ethnicity, documenting substantial variation in access to workplace retirement plans, accumulated savings, retirement income, mortality, home ownership and family structure.
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