Older Black and Hispanic households have much lower retirement account savings

Share of older households with retirement account savings, by race/ethnicity and age, 2019
Race/ethnicity Has retirement account savings No retirement savings
White   61.8% 38.2%
Black   35.5% 64.5%
Hispanic 29.5% 70.5%
White   48.2% 51.8%
Black   20.8% 79.2%
Hispanic 15.0% 85.0%
Median account balance of older households with retirement account savings, by race/ethnicity and age, 2019

Conditional median retirement account balance (2019$)
White   $156,000
Black   $62,000
Hispanic $105,000
White   $150,000
Black   $38,600
Hispanic $41,000

Notes: Retirement account savings include funds in 401(k)-style defined contribution plans and in IRAs, but not in defined benefit pension plans. Hispanic refers to Hispanic of any race, while white and Black refer to non-Hispanic whites and non-Hispanic Blacks.

Retirement account savings include funds in 401(k)-style defined contribution plans and in IRAs, but not in defined benefit pension plans. Hispanic refers to Hispanic of any race, while white and Black refer to non-Hispanic whites and non-Hispanic Blacks. A household’s age, race, and ethnicity are based on the age, race, and ethnicity of the reference person, who, in households of more than one person, is defined by the Survey of Consumer Finances as the male in a mixed-sex couple or the older person in a same-sex couple. Non-Hispanic Asian Americans/Pacific Islander households and those not included in the other groups are not shown in the graph due to small sample sizes. Account balance calculations for Hispanic households age 55 and older and Black households age 65 and older should be interpreted with caution because of small sample sizes of such households with retirement account savings. The median household retirement account savings includes reported savings in accounts held by both spouses or partners, in the case of married or partnered couples, and—less commonly—the retirement account savings of other people who are financially interdependent with the “economically dominant” individual or couple in the household (Bhutta et al. 2020).

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.