Lack of access to retirement plans in the workplace, as well as inequitable eligibility requirements, are creating a persistent retirement savings gap for Latinos.
Those two problems are making Latinos fall ever farther behind as they try to save for retirement, and the report adds that just 31% of all working-age Latinos participate in workplace retirement plans, resulting in a median retirement account balance equal to $0. However, when given the opportunity to participate in plans, they are slightly more likely than other races and ethnicities to participate.
Latinos’ current retirement plan participation rate is 30.9%, compared with 53% for white workers. In addition, working Latinos who are saving have an average retirement account balance less than a third that of the average for white workers. In fact, overall, less than 1% percent of Latinos have retirement accounts equal to or greater than their annual income.