While traditional pension coverage of older Black workers outstrips that of other older workers, retirement coverage for Hispanics lags: Share of older workers (age 55+) who participate in a retirement plan at a current job, by race/ethnicity and plan type, 2019

Race/ethnicity Yes No
Any plan 54.4% 45.6%
Traditional pensions and other defined benefit  18.4% 81.6%
401(k)s and other defined contribution  46.2% 53.8%
Any plan 50.3% 49.7%
Traditional pensions and other defined benefit  24.8% 75.2%
401(k)s and other defined contribution  39.1% 60.9%
Any plan 30.3% 69.7%
Traditional pensions and other defined benefit  10.4% 89.6%
401(k)s and other defined contribution  27.2% 72.8%

Notes: Defined benefit pension plans include traditional pension plans as well as other retirement plans in which employers are responsible for funding promised benefits. Retirement savings accounts such as 401(k)s are referred to as defined contribution plans because employer contributions (if the employer contributes at all), rather than retirement benefits, are determined in advance. Hispanic refers to Hispanic of any race, while white and Black refer to non-Hispanic whites and non-Hispanic Blacks.

Defined benefit pension plans include traditional pension plans as well as other retirement plans in which employers are responsible for funding promised benefits. Retirement savings accounts such as 401(k)s are referred to as defined contribution plans because employer contributions (if the employer contributes at all), rather than retirement benefits, are determined in advance. Hispanic refers to Hispanic of any race, while white and Black refer to non-Hispanic whites and non-Hispanic Blacks.

The sample includes survey respondents and spouses or domestic partners who are employees or self-employed workers (which would include small business owners). Participants in any plan are workers who answered “yes” to a question about whether they were included in any “pension, retirement, or tax-deferred savings plans” connected with their job (not including IRA or Keogh plans) and workers whose spouse or partner answered “yes” for them. Participants who answered yes were then asked to identify which type or types of plans they were included in. Non-Hispanic Asian Americans/Pacific Islanders and those not included in the other groups are not shown in the graph due to small sample sizes. The share of individuals with any type of plan may be less than the sum of the share of individuals with defined benefit pension plans and the share of individuals with defined contribution plans because some individuals have both types of plan.

Source: Economic Policy Institute (EPI) and Schwartz Center for Economic Policy Analysis (SCEPA) analysis of Survey of Consumer Finances 2019 microdata (Federal Reserve 2022a).

View the underlying data on epi.org.