African American community participating in, but not maximizing retirement plansNearly half of African Americans have a workplace retirement plan—such as a 401(k)—and 8 in 10 eligible to contribute to such plans are doing so, according to a new Prudential study. "While it is good news that so many members of the community are contributing to their workplace retirement plans, many continue to contribute less than their employer match or take loans from their plan," says Michael Davis, senior vice president of Stable Value for Prudential Retirement. "That's partly why African Americans' balances within employer plans are less than half those of the general population. Another major barrier to maximizing participation is the lack of education about how these plans work."
The findings Davis cites are from Prudential's newly released 2013-2014 "The African American Financial Experience" study. The study also found that while African Americans note saving for retirement is one of their top financial priorities, the community (55 percent) places a lower priority overall on saving for retirement than the general population (62 percent). "The African American community is more focused on reducing debt," Davis adds.
Want to hear more from Michael? Watch a video of Michael discussing the survey findings. Want more information about the study? Read the "African American Financial Experience" or watch a replay of the May 21 media briefing launching the study results. Want to speak to Michael? Contact Josh Stoffregen.
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