To boost employee 401(k) participation, most research suggests focusing on age. But a new study suggests race and ethnicity are just as important.
According to a recent study by Hewitt Associates and Ariel Education Initiative, white and Asian staffers are more likely to participate in their employers’ 401(k) plans than African-American and Hispanic employees.
What’s more, contribution rates among participating white and Asian employees are also higher.
Based on the study, the average 401(k)-participation rates of workers bringing in between $30,000 and $59,000 annually include:
- 75% of African American employees
- 75% of Hispanic employees
- 80% of white employees, and
- 84% of Asian employees.
In addition, the average contribution rate for this salary range was 5.9% for African Americans and 6.1% Hispanics; compared to 7.1% for whites and 8.4% for Asians.
Pass along these findings to your HR/Benefits department to ensure that you’re focusing on all the relevant factors when it comes to boosting your firm’s retirement-plan participation.
