Many older Americans today are poorly prepared to finance their retirement years, and such under-preparedness is especially acute for members of disadvantaged racial and ethnic minority groups. Black and Hispanic families, for example, have only a quarter of the amount of net private wealth (assets minus liabilities) compared to White families. Moreover, racial wealth gaps have not diminished much in the past four decades, in part because Whites tend to save more in and withdraw less from employer-sponsored retirement plans than do their Black and Hispanic counterparts.
The studies herein provide a range of perspectives on the causes and consequences of retirement wealth inequality, along with suggested opportunities to close the gaps. The contributors explore new datasets, analyze historical trends in income and wealth disparities, and evaluate alternative wealth and inequality measures. They also evaluate the roles of differential access to financial, housing, and human capital, and the role of the social security program. While the latter is a great equalizer, narrowing racial gaps considerably, the program faces insolvency and, without reform, it will be unable to pay full scheduled benefits within a decade.
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1: Olivia S. Mitchell and Nikolai Roussanov: Diversity, Inclusion, and Inequality in Retirement Wellbeing: An Overview
I. Retirement Wealth Inequality
2: Gustavo Suarez, Jeffrey Thompson, and Alice Henriques Volz: Retirement Assets and the Wealth Gaps for Black and Hispanic Households
3: Karen Dynan and Douglas Elmendorf: Changes in Racial Gaps in Retirement Security over Time
4: Edward N. Wolff: Understanding Trends in Hispanic and African American Retirement Preparedness in the US
5: Jean-Pierre Aubry, Alicia H. Munnell, and Gal Wettstein: Wills, Wealth, and Race
I. The Roles of Housing, Expectations, and Social Security
6: Larry Santucci: The Racial Wealth Gap and the Legacy of Racially Restrictive Housing Covenants
7: Abigail Hurwitz, Olivia S. Mitchell, and Orly Sade: Racial and Ethnic Differences in Longevity Perceptions and Implications for Financial Decision-Making
8: Sylvain Catherine and Natasha Sarin: Social Security and the Racial Wealth Gap
II. Differential Access to Financial and Human Capital Markets
9: Vicki L. Bogan: Financial Inclusion and Retirement Preparedness in the United States
10: Amir Kermani and Francis Wong: How Racial Differences in Housing Returns Shape Retirement Security
11: Mingli Zhong and Jennifer Andre: Racial Differences in Debt Delinquencies and Implications for Retirement Preparedness
12: Annamaria Lusardi, Olivia S. Mitchell, Alessia Sconti, and Andrea Sticha: Understanding Financial Vulnerability among Asians, Blacks, and Hispanics in the United States
III. Narrowing the Gaps
13: Carl Davis and Brakeyshia Samms: Tax Policy to Reduce Racial Retirement Wealth Inequality
14: John J. Kalamarides: Improving the Financial Security of Workers of Color through Employee Financial Wellness Programs
15: David C. John, J. Mark Iwry, and William G. Gale: Enhancing Retirement Wealth and Reducing Retiree Inequality: Emergency Savings 460 Accounts and Other Policy Options
16: Naomi Zewde: Would Baby Bonds Reduce Racial Retirement Wealth Inequality?
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