Blacks and Hispanics Are Falling Behind Whites in Retirement Coverage

The shift from traditional defined-benefit pensions to 401(k) plans over the past two decades has left the vast majority of Americans unprepared for retirement. Minority workers have been disproportionately affected. In 1990, black workers were almost as likely as white workers to have pensions, as shown in the figure below. Over the next two decades, blacks started falling behind whites. By 2010, only 43 percent of black workers age 26-61 were participating in an employer-based retirement plan, compared to 50 percent of white workers the same age. Hispanics, meanwhile, who already lagged behind both groups, fell even farther behind. [Read more]