09.01.23

Customized Benefits, Financial Literacy Are Key To Closing the Racial Retirement Savings Gap

by: Remy Samuels

A recent report from the U.S. Government Accountability Office revealed that last year, a larger percentage of white households held a retirement account balance than that of any other race, and those accounts held about double the median balance of households of other races. By tweaking plan design, offering an equitable benefits package and providing financial literacy education, plan sponsors have an opportunity to help close the racial retirement gap and encourage participants to contribute to a retirement account, say experts. There’s several pieces to the retirement puzzle,” says Wei Hu, vice president of financial research at Santa Clara, California-based Edelman Financial Engines. “They all don’t have to happen at the same time, so what people need is a holistic-minded advisor who can help them put all those pieces together instead of waiting until some age when everything is available all at once.”

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