Black and Hispanic Americans disproportionately suffer from 401(k) disparities, study suggests

Blacks and Hispanics tend on average to contribute less to their retirement accounts, potentially due to certain disparities they experience, according to study (Credit: Photo courtesy of American Advisors Group)

Black and Hispanic Americans tend on average to contribute less to their retirement accounts and be more likely to take out loans against the balance they do have, a study by Morningstar suggests.

The study looks at how the Saver's Match, a free money program for retirement, helps at mitigating race and gender disparities in 401(k) outcomes. The report looked at nine 401(k) sponsors' administrative data from the recordkeeper and was merged with human resources data from the plan sponsor to provide information on race and gender.