Excellent question. It’s best summarized by this February 2015 article in the New Republic.
In July 2014, the Federal Reserve released a report that outlined the growing retirement crisis in America. Nearly a third of Americans over the age of 18 have no retirement savings. Twenty-three percent of those between the ages of 45 and 59 have no savings or pension. But the Fed report overlooked an key part of this problem: Minorities are in far worse financial shape than white Americans.
That’s the finding of a new analysis from the Urban Institute, a nonpartisan think tank in Washington, D.C. A team of five researchers put the data narrative together, which consists of nine graphs that outline why the retirement crisis is so much worse for African-Americans and Hispanics. The largest reason for this gap is that Hispanics and African-Americans build up less wealth than white families over their lifetime. The gap is only getting worse. In 1983, the median white family had more than $100,000 in wealth, compared to less than $13,000 for African-American families—an eight-fold difference. By 2013, the median white family had 12 times the wealth of the median African-American family. The same is true of Hispanic families.
By age 61, the median white person has earned $2 million over their lifetime. The median African-American and Hispanic have earned $1.5 million and $1 million, respectively. The higher lifetime earnings allows whites to save more, and those savings earn more interest—wealth begets more wealth.
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So, based on what we view as a crisis of epic proportions being utterly ignored in the media and in Washington the only option we have is to educate ourselves and work to educate our friends and family. Yes, we could focus on the racism that fostered this income inequality but we don’t have time for that. We have to change our habits Today! We have to start saving our money. EARLY!… So it has time to grow. The numbers don’t lie. We have to act now.
I recently retired two years ago and have many friends that are currently planning their retirement or have also retired. As I started looking for Black Senior groups to participate in retirement activities, I was quite alarmed and surprised with the type of information that pops up regarding the Black Seniors; mostly the “retirement crisis” facing black Americans.
I found your sight and believe it is an excellent way to get information to our community. I’ve noticed that many of your articles are several years old. Just wondering if you are still operational? Hopefully you are! Excellent website.
I’m wondering the same thing. No up to date information?
Dear Ms. Moon,
I would like to get in touch with you regarding supplying information to the African-American community regarding retirement.
I have written several blogs concerning the challenges we face as African-Americans in the low to middle-class income group and how we can possibly find solutions to overcome them.
Hi Lori,
Thanks for your note and congrats on your recent retirement! I apologize about the lack of updated info on the site. It was a pet project I started many years ago when I became aware of the retirement crisis in the Black community. The site never gained much traction as I didn’t do much promotion and still work a 9 to 5. (I’ve got 10 more years to go!-) But since your post other people have shown an interest. I’ll make an effort to put some more current information on the site.
Best Regards,
Kevin
Wow!! What a Godsend!! Just the idea that somethng actually exist is good to know. I too am approaching the retirement age and was looking for info, specifically as a black woman.
How can I help get this boat moving again?
There are so many like us.