Despite rising incomes, many Black Americans continue to face major hurdles when it comes to saving for retirement, according to the 2025 Retirement Confidence Survey by the Employee Benefit Research Institute.
The survey, which included an oversample of Black workers and retirees, revealed that the racial wealth gap persists across income levels. Among households earning $75,000 or more, just 33% of Black respondents reported having at least $250,000 in savings and investments, compared to 63% of non-Black respondents. Debt is a key factor: 63% of higher-income Black households said debt was a problem, versus 45% of non-Black households at similar income levels. Nearly half of those Black respondents said debt directly impacted their ability to save or retire comfortably.
Debt can hinder Black people from saving.
Debt remains a major barrier to wealth building for Black people. For example, Black student loan borrowers are disproportionately burdened by debt, with undergraduate Black borrowers paying an average of $386 per month, according to a 2024 report by the Education Data Initiative.
Housing costs further compound this disparity. A 2022 report from Housing Matters found that, on average, Black homeowners pay an additional $13,464 over the life of a mortgage. This extra cost translates to approximately $67,320 in lost retirement savings for Black households, further widening the racial wealth gap.
While many Black Americans feel confident managing daily expenses, fewer feel equipped to invest or plan for the long term. Among higher earners, only 77% of Black respondents reported saving for retirement, compared to 87% of non-Black counterparts. Retirement itself looks different, too. Around 44% of Black retirees said they left the workforce earlier than planned due to health issues or disability, compared to 32% of non-Black retirees. Many also returned to work for financial reasons and were more likely to say their retirement lifestyle fell short of expectations.
There’s a financial education gap, too.
Access to professional financial advice remains limited among the Black community. The study found that only 31% of Black respondents currently work with a financial advisor, although nearly half said they plan to in the future. Those who do seek help often prioritize managing debt, creating wills or estate plans, and securing life insurance over traditional retirement planning.
While the data is alarming, researchers behind the eye-opening study said there are ways that the financial system can help Black individuals boost their retirement savings. These include providing greater assistance in managing competing financial priorities, such as reducing debt, supporting family members, and building long-term financial security.
But Black folks don’t have to wait on banks or institutions to take the first step. There are countless resources available to begin the journey toward generational wealth. It starts with prioritizing financial education, learning the fundamentals of budgeting, saving, and investing, while also exploring deeper topics like credit management, compound interest, and asset allocation.
Black people can tap into a wide range of tools, including online courses, books, podcasts, and community workshops tailored to financial literacy. Connecting with financial professionals and attending local seminars can also offer practical guidance. By creating a culture of financial learning at home, Black individuals and families can not only strengthen their financial knowledge but also equip the next generation with the tools to start investing early and develop healthy money habits that last a lifetime.
SEE MORE:
Catalyzing Wealth-Building In The Black Community
The Racial Wealth Gap And Solutions To Address It
The Retirement Gap: Why Saving For The Future Is Harder For Black Americans
was originally published on
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