401(k) Plans in Living Color: A Study of 401(k) Savings Disparities Across Racial and Ethnic Groups

401(k) Plans in Living Color: A Study of 401(k) Savings Disparities Across Racial and Ethnic Groups

Race and ethnicity have a significant influence on the so-called savings gap among U.S. workers who save and invest in 401(k) plans, a new report from the Ariel Education Initiative and Hewitt Associates finds. Funded by the Rockefeller Foundation, the report, 401(k) Plans in Living Color: A Study of 401(k) Savings Disparities Across Racial and Ethnic Groups (21 pages, PDF), found that 66 percent of African-American employees and 65 percent of Hispanic employees participate in their company's defined contribution plans, compared to 77 percent of white workers and 76 percent of Asian workers. What's more, even when adjusted for factors such as age and income, the report found continued evidence of racial and ethnic disparities.