Average retirement confidence levels among minority workers are relatively high, even though the workers’ average savings rate is relatively low.
Researchers at the Employee Benefit Research Institute, Washington, have published data supporting these conclusions in a summary of results from the 2007 Minority Retirement Confidence Survey, which included responses from 1,004 U.S. adults ages 25 and older who were not retired. The sample included 500 African-American adults and 504 Hispanic adults.
The researchers compared the minority survey results with results from the 2007 Retirement Confidence Study. For that survey, researchers interviewed 1,001 workers ages 25 and older, and 251 retirees.
Only 4% of the African-American and 4% of Hispanic survey participants have saved $250,000 or more, while 54% of the African-American participants and 55% of the Hispanic participants have saved less than $10,000, EBRI researchers report.
About 14% of all retirement confidence survey participants have saved $250,000 or more, and 35% have saved less than $10,000.
Higher income minority workers came up with higher estimates of the amount of money needed in retirement than lower income minority workers did, and the estimates varied with age and national origins as well as with income.
African-American participants younger than 45 were more likely than younger African-American participants to say they would need at least $1 million for retirement, and Hispanic participants born in the United States estimated that they would need more retirement savings than Hispanic participants born outside the United States did, the EBRI researchers report.