Black and Hispanic American Findings from the 2021 Retirement Confidence Survey

Abstract

The Retirement Confidence Survey (RCS) was conducted for its 31st year in 2021 to measure attitudes of American workers and retirees about issues surrounding retirement. The 2021 RCS included an oversample of Black and Hispanic Americans to allow for a closer analysis of the challenges they face in saving and preparing for retirement. This oversample allowed controlling for the disproportionately lower financial resources of Black and Hispanic Americans when examining their attitudes toward and preparations for retirement. Several important results emerged, including the need for more access to workplace retirement saving plans that provide one-on-one, personalized advice that builds on Black and Hispanic Americans’ comfort with having a connection to those providing them advice. In addition, financial service companies having more people who are similar to Black and Hispanic Americans and treating them fairly could improve their use of the financial system. A greater understanding of the importance of supporting family and friends that in particular Hispanic Americans feel when making financial decisions is needed, so that this obligation can be weighed against their own savings to build wealth that could result in a lesser need for supporting family members in the future. Obviously, higher incomes would help, but these issues arise even for those with higher incomes.