Retirement planning needs more equality

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Equality is a subject that permeates societal discourse, and with good reason. It is also increasingly discussed in the financial services industry. Again, rightly so.

One area of ​​finance that is in urgent need of high equality is retirement planning and savings. Not all workers have access to 401 (k) plans. As with many outside the public sector, defined benefit pensions are relics of a bygone era. For entry-level workers or those in low-paying jobs, saving for retirement is all the more difficult. Add to that, there are retirement issues that emerge along demographic and gender lines.

“BlackRock 2021 DC Pulse A survey found that 7 in 10 pension plan members felt “on track” with their savings to retire with the lifestyle they want. There is more below the surface, however. A closer look reveals that despite these optimistic prospects from participants on the whole, some are being left behind, ”explains the asset manager. “A better retirement for all is fair, and today’s gender and racial differences are stark. For example, BlackRock’s DC Pulse study found that women are almost 20% less likely to report that they are “on track” for retirement compared to men, with worries about surviving. their economies having a major influence. “

The BlackRock study also reveals that there are significant racial retirement inequalities that need to be addressed.

“The EBRI survey also showed that black and Hispanic men and women are significantly less likely to have saved for retirement, a trend that is true across all income levels for both of these groups, but quite significant in both groups. lower income quartiles. Even among people earning more than $ 75,000 a year, EBRI data revealed that 89% of whites reported saving for retirement, compared to 84% of Hispanics and 78% of blacks, ”according to BlackRock.

The data indicates that employer-sponsored plans are, unsurprisingly, essential elements of the equality scenario in retirement, as are higher wages. Simply put, higher-wage workers with access to employer-sponsored plans are more likely to take advantage of these offers than low-wage workers are to save for their retirement on their own.

Yet even workers with access to such plans yearn for more education and demand a more stable income, indicating that there is still a lot of work to be done.

“DC Pulse reveals that 8 in 10 plan members say it would be helpful if their employer provided secure income-generating options in their workplace retirement savings plan. And 89% even agree that knowing that they will have a guaranteed income in retirement would have a positive impact on their well-being today, ”adds BlackRock.

For more news, information and strategy, visit our Retirement Income Channel.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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