African Americans Retiring Earlier but Saving Less
2 days ago
New study shows the Black community only saves an average of $9,000
African Americans have stopped working sooner, but with less money saved up.
A new study by Prudential shows that African Americans retire earlier than the general population.
About 25 percent of African Americans are expected to retire before they are 60 years old, compared to 20 percent of the general population.
The average age for African Americans is 56, that is three years younger than the general population, according to the study.
In terms of savings, they have a median savings of $9,000 in their employer-sponsored plans, compared to $20,000 among the general population.
One of the reasons for saving less, the study found, is that African Americans take out loans or withdrawals from plans before retirement age for immediate needs.
Another reason is that African Americans seek safety rather than growth. The survey shows nearly three-quarters of those surveyed have saving accounts, but they are half as likely to invest in IRAs and less likely to invest in 401(k) than the general populations.
Are you saving up for your retirement?
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