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Racial Wealth Gap Widens as Many Workers of Color Lack Retirement Savings

Research from The Pew Charitable Trusts shows the median wealth gap between white families and Black or Hispanic families expanded by about $50,000 between 2019 and 2022, driven largely by retirement savings disparities.
To help cover the more than 50 million Americans lacking workplace plans, Pew advocates for automatic Individual Retirement Accounts. More than 1.2 million workers across 15 states have collectively saved $3 billion through state-sponsored programs.
John Scott, director of Pew's retirement savings project, said these programs reach workers whose access to retirement benefits is often limited by their employer. Roth IRAs allow flexible withdrawals for emergency expenses.
Minnesota recently launched its Auto-IRA program for employers with five or more employees, while Hawaii is set to launch this year and Washington state plans to start next year.
Retirement savings, not home equity, is the largest driver of American household wealth, according to the Census Bureau. In 2022, the typical white family had $240,000 more wealth than the typical Black family and $223,000 more than the typical Hispanic family.

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