Here are five facts about financial planning and saving for retirement, with some tips and tools everyone can use to achieve a financially secure future:
1. Black and Hispanic workers, and women, are more likely to experience financial insecurity during retirement
Research shows some of America’s workers are more likely to experience financial insecurity during retirement. Women age 65 or older are about 43% more likely than men to live on an income below the poverty level. And 17% of both Hispanics and Black Americans 65 or older live below the poverty line, compared with only 7% of whites and 11% of Asian Americans of the same age. Additionally, studies show older Black and Hispanic Americans rely on Social Security benefits to a greater degree than white and Asian Americans.
2. Many workers don’t have access to or participate in employer-sponsored retirement plans
One recent study showed only about half of Hispanics have an employer that provides a retirement plan, compared with 75% percent of white workers. And when it comes to plan participation, Hispanic and Black Americans are both less likely to participate in retirement plans ‒ only 34% of Hispanic families and 44% of Black families participate in a plan, compared with 60% of white families. We also know only about 47% of working women participate in a retirement plan, for a variety of factors.
3. If your employer does offer a plan, take advantage of it
Employer-based plans are the easiest way to save for retirement. If your employer offers a plan, join as soon as you can and put in the maximum amount allowed. If you can’t afford the maximum, contribute as much as you can – try to contribute enough to maximize any employer matching funds. That’s free money!
4. There are many ways to save for retirement
If your employer doesn’t offer a plan, there are other ways to save. For example, you can open an IRA account, or even start your own savings plan if you’re self-employed.
5. Financial planning can help you figure out how much you can save
Setting up a budget can help you see what money you have coming in, and where it is going. Whether you are 18 or 58, you can take steps toward a better, more secure future. Check out all our resources on planning for retirement and meeting your savings goals to get started today. And if you would like a consultation to help create a financial plan, feel free to reach out.
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