Race and Retirement: How to Not Lose Out
As many as 60 percent Hispanic, 54 percent Black and 48 percent white households in the US are at risk of not being able to withhold their current living standard after leaving the workforce.
Additionally, the ongoing pandemic has made it tougher to accumulate retirement savings.
While the unemployment rate increased across the board, the rate for Hispanic and Black workers was much greater than that of white workers, which only widens the racial gap in retirement planning.
Racial Retirement Wealth Gap
This term refers to inequalities that people of color face when they plan their retirement, due to which they’re at a higher risk of financial insecurity.
Each individual’s overall net worth determines their retirement security level, but systematic racism means that people of color consistently receive lower paychecks despite the same level of education as their white peers.
As such, they have fewer opportunities to build their savings; the average amount white households save is $120,000, compared to people of color saving a mere $30,000.
If you’re in a similar situation, here are a few ways to shrink the gap. We’re suggesting a few practices to adopt so you can improve your finances in due time:
Setting up goals:
It’s easier to change your family’s financial habits if you’ve got a clear long-term goal. These goals must be in line with the quality of life you wish to provide for yourself and the family.
Since the future is unpredictable, it’s best to have retirement and emergency savings.
Aim to pay off any loans, be it for your mortgage or credit card, before you retire to cancel out the chances of making interest payments with the retirement money.
Employer or self-sponsored retirement plan
If your employer doesn’t sponsor you for a retirement plan, seek other options. An Individual Retirement Account (IRA) is an excellent option that includes stocks, mutual funds, and bonds.
There are several types of IRAs: traditional, SEP,Roth, or SIMPLE. Orion Metal Exchange offers Precious Metals IRA as well; read here.
Sticking to the plan
While planning for your retirement, stay persistent. Set a sum of money aside from each paycheck you receive.
Invest in the market
Investing in the market can be overwhelming, but you wouldn’t want to miss out on undue profit in the name of fear. If you don’t want to be a DIY investor, hire a financial advisor instead.
Invest your time in preparing for a happy retirement. At Orion Metal Exchange, we help you better understand the benefits of physical gold and silver investing; after all, precious metals are an essential part of any retirement plan.
We’re dedicated to providing you the ‘secure vault storage’ or ‘safe home storage’ to best fit your needs.