Survey: African-Americans Lag in Efforts To Save More Money For Retirement

Thanks to Patric Dublin for this blog entry!

Atlanta Daily World

African Americans have saved on average $59,000 for retirement, compared to the $93,000 that their White counterparts have saved. This is just one of the important findings in the 2006 Ariel/Schwab Black Investor Survey.
Blacks contribute less to their retirement accounts monthly; the median monthly contribution is $254 for Black employees, compared to $306 for White employees, according to the ninth annual survey.
When asked about other retirement savings outside retirement accounts, the median amount for Blacks who have such savings is $36,000, compared to $75,000 for Whites.
It is a risky trend in light of the uncertainty of pension funds and Social Security, Lisa Toppin, a director of human resources and diversity programs with Charles Schwab & Co., Inc., said.
"It is a disparity that compounds over time," she said.
This year, the survey focused exclusively on retirement planning -- specifically the different expectations and strategies Blacks and Whites have for retirement.
An important difference between Blacks' and Whites' retirement funding is that Blacks are significantly more reliant on employer pensions than Whites, Toppin said.