With Less Wealth And Extra Reliance On Financial Support, Black Retirees Are Struggling More

Almost 37% of Black retirees indicated that they received at least some level of financial support from their children in retirement, more than double of all respondents.

The golden years of retirement are more gloomier for Black Americans than other groups. Fresh data shows just over 35% of Black retirees felt that they were adequately prepared for retirement, a sizeable gap when compared to 54% of all respondents.

Simultaneously, 32% of Black retirees stated they had nothing saved for retirement, versus nearly 25% for all. Roughly 45% of Blacks have enough saved for a comfortable retirement, as opposed to about 57% overall.

The figures stem from this new study, paid for by Clever Real Estate. Participants answered up to 27 questions about their finances, retirement preparations, and worries over retirement and financial planning.

Study author Matt Brannon said that Black Americans feel less prepared for retirement, as they generally don’t make as much money and have less of it invested. The median American family earns about $70,260 per year before taxes. That’s much higher than $46,480 for the median Black family, per the report.

The median American family owns $67,800 in stocks, versus a sparse $16,500 for the same Black family. “With numbers like those, it’s no surprise that Black Americans are generally more concerned about not having enough saved,” Brannon said.

Almost 37% of Black retirees indicated that they received at least some level of financial support from their children in retirement, more than double of all respondents.

Brannon described this as an unfortunate cycle. “The clearest way to reverse that trend is by making enough money in your working years to where you don’t have to rely on your children. But that’s easier said than done.”

However, there were some bright spots. Close to 55% of Black retirees stated that they believed America is in a retirement crisis, lower than almost 66% overall. And around 84% of Black retirees disclosed that they felt happier since they retired, higher than close to 79% of all retirees.

Brannon offered tips to help Black Americans improve their retirement circumstances:

For current retirees, “make sure you’re earning interest on your savings. Don’t just keep your money under your mattress. Put your money in some sort of account that will increase the value of your savings, whether that means traditional investing in stocks and bonds, or lower-risk options like CDs and high-yield savings accounts.”
For those who haven’t retired yet, he suggests that you “plan to increase your income. If you’re young enough to where you’re still deciding on a life path, be sure to pick a line of work with opportunities for raises and growth over the course of your professional career. If you already have a career, explore certifications related to your field that can make you a more attractive candidate for higher-paying jobs in your specialty.”
More advice: “Don’t shy away from investing. Although investing can be intimidating and comes with risk, 39% of Black retirees said they wished they invested in more high-risk/high-reward assets when they were younger.”