401(k) Plans and Race

The brief’s key findings are:

• Blacks and Hispanics are less likely to participate in 401(k)s and, when they do, they contribute at lower rates.

• Even after controlling for age, job tenure, and earnings, these patterns persist.

• However, adding education, wealth, and plan characteristics makes the differences disappear.

• So the best way to boost saving among minorities is to ignore race and instead improve plan design for disadvantaged workers.