Fact Sheet Access to Workplace Retirement Plans by Race ...

Fact Sheet

Access to Workplace Retirement Plans by Race and Ethnicity

Catherine Harvey AARP Public Policy Institute

In addition to Social Security, individual savings and employer-sponsored retirement plans are essential sources of retirement income. In fact, workers are 15 times more likely to save for retirement if they have access to a payroll deduction savings plan at work.1 Yet nearly half of American private-sector employees--roughly 55 million--work for an employer that does not offer a retirement plan. Black, Asian, and Hispanic employees are less likely than White employees to be covered by a plan. Black, Asian, and Hispanic workers strongly support efforts by states to create retirement savings programs for small-business employees whose employer does not already offer a plan.

Hispanic, Black, and Asian workers are less likely than White workers to have an employer-sponsored retirement plan.

FIGURE 1 Employer-Sponsored Retirement Plan Coverage of PrivateSector Workers, Ages 18?64, by Race and Ethnicity

Not Covered Covered

White

Black

Asian

Hispanic

57%

50% 43%

50% 52%

66%

48%

34%

Source: AARP Public Policy Institute calculations based on US Census Bureau, Current Population Survey, Annual Social and Economic (ASEC) Supplement, , US Census Bureau, 2014.

Note: Data are for wage and salary workers ages 18?64 whose longest job in the previous year was in the private sector. White, Black, and Asian workers are nonHispanic.

1 Employee Benefit Research Institute. 2006. Unpublished estimates of the 2004 Survey of Income and Program Participation Wave 7 Topical Module (2006 data). Data are for workers earning between $30,000 and $50,000.

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Hispanic, Black, and Asian workers make up about 43 percent of those who lack access to an employersponsored retirement plan.

FIGURE 2 Private-Sector Workers, Ages 18?64, without an EmployerSponsored Retirement Plan, by Race and Ethnicity

FEBMROUNATRHY 20175

Other nonHispanic

2%

Hispanic 24%

Asian 6% Black 11%

White 57%

Source: AARP Public Policy Institute calculations based on US Census Bureau, Current Population Survey, Annual Social and Economic (ASEC) Supplement, , US Census Bureau, 2014.

Note: Data are for wage and salary workers ages 18?64 whose longest job in the previous year was in the private sector. White, Black, and Asian workers are nonHispanic.

Hispanic, Black, and Asian workers strongly support state-facilitated retirement savings plans.

FIGURE 3 Support for State-Facilitated Retirement Savings Plans Among Private-Sector Workers Ages 18?64, by Race and Ethnicity

Support Oppose

Asian

Black

Hispanic

84%

81%

76%

24%

16%

19%

Fact Sheet 396, February 2017

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Source: AARP and NORC at the University of Chicago, 2016 Retirement Security National Survey (Washington, DC: AARP and NORC at the University of Chicago, January 2017), surveys_statistics/econ/2017/retirement-security-topline-partial-release.pdf.

Note: Data are for adults ages 18?64 currently employed in the private sector.

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