[Via CBPP] Social Security is a critical source of income for African American people of all ages and has reduced economic disparities between African American and white families. That’s especially important given recent findings from an Urban Institute study that we commissioned on African American economic security and the role of Social Security, which details the economic barriers that African American workers face.
African American seniors are likelier than other seniors to face financial insecurity in retirement, the study found. (That’s consistent with other research that has found a significant racial retirement wealth gap.) They are less likely to have financial assets, retirement accounts, and home equity than white seniors — and, when they do, their value is substantially less, the Urban study found. When workers of color and white workers have similar circumstances, they make similar choices about participation in a retirement plan and contribution levels. But African American workers are less likely to be offered workplace retirement plans and likelier to work in low-wage jobs with little margin for savings.
Read more: Center on Budget and Policy Priorities