January 29th 2024.
As we look towards our golden years, it's important to consider the realities faced by Black Americans in retirement. According to recent data, only 35% of Black retirees feel adequately prepared for retirement, a significant difference when compared to the 54% of all respondents who feel the same.
What's more concerning is that 32% of Black retirees have nothing saved for retirement, while the number drops to 25% for all respondents. Additionally, only 45% of Black retirees have enough savings to comfortably retire, compared to 57% of all respondents. These statistics come from a new study conducted by Clever Real Estate, where participants were asked 27 questions about their financial status, retirement preparations, and concerns about financial planning.
Study author Matt Brannon shares that Black Americans often feel less prepared for retirement due to their lower income and lack of investments. The median income for an American family is around $70,260, while the median income for a Black family is only $46,480. This disparity also carries over into investments, with the median American family owning $67,800 in stocks, while the median Black family only has $16,500 invested. It's no surprise that with these numbers, Black Americans are more worried about not having enough savings for retirement.
Another unfortunate trend highlighted in the study is that almost 37% of Black retirees receive financial support from their children, which is more than double the number of all respondents. Brannon notes that this creates a cycle where the best way to break free from this reliance is by making enough money during our working years to not have to depend on our children. However, this is often easier said than done.
But it's not all doom and gloom. The study also found that 55% of Black retirees believe America is facing a retirement crisis, which is lower than the almost 66% of all respondents who feel the same way. Moreover, 84% of Black retirees reported feeling happier since retiring, higher than the close to 79% of all retirees.
Brannon also offers some tips to help Black Americans improve their retirement situation. For current retirees, he advises putting your savings in an account that will earn interest, rather than keeping it under your mattress. This could mean traditional investing in stocks and bonds, or lower-risk options like CDs and high-yield savings accounts. For those who haven't retired yet, Brannon suggests seeking opportunities to increase income, whether it's through career growth or obtaining certifications related to your field.
He also encourages Black Americans to not shy away from investing, as 39% of Black retirees wish they had taken more risks when they were younger. While investing can be intimidating, it can also lead to higher rewards in the long run.
In conclusion, it's important for Black Americans to be aware of the challenges they may face in retirement and to take proactive steps towards improving their financial situation. By following Brannon's advice and being mindful of our finances, we can work towards a more secure and fulfilling retirement.
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