Retirement Savings Crisis: What Black Women Need To Know About The Growing Gap – Essence

Retirement can feel like a distant dream, especially when juggling the demands of everyday life. But for many Americans, particularly Black women, the reality is more sobering: the future may not be as financially secure as we hope. A new survey by BlackRock reveals a stark truth—most Americans see a retirement savings crisis on the horizon, and the numbers are even more alarming for women of color.

According to the survey, conducted last month by Public Opinion Strategies, an overwhelming 90% of registered voters believe that America is currently facing a retirement savings crisis. With economic uncertainty, rising inflation, and systemic financial inequalities at play, it’s no surprise that only 22% of respondents feel “extremely or very confident” they’ll have enough money to live on throughout their retirement. This sentiment mirrors the challenges that Black women, who often earn less, face when planning for the future.

The survey findings underscore a significant shortfall in retirement preparedness. A staggering 30% of voters reported having no retirement savings at all, with 66% saying they have saved less than $150,000—far below the $2 million that respondents estimate they’ll need to retire comfortably. For Black women, who often face both racial and gender wage gaps, these numbers are especially troubling.

Historically, Black women have had to navigate multiple layers of financial inequality. On average, Black women in America earn just 63 cents for every dollar earned by white men, a pay gap that compounds over a lifetime. These disparities contribute to a savings gap that can make retiring comfortably feel out of reach for many. The survey results reveal that 40% of the Black community, including 42% of women of color, reported having no retirement savings. For young Black women ages 18-34, that number jumps to 53%.

The survey also highlighted a significant lack of trust in elected officials to address the retirement crisis. Only 13% of respondents felt that politicians in Washington were focused on helping everyday Americans plan and save for a secure retirement. For many Black women, this disconnect between their financial realities and the policies being discussed in the nation’s capital reinforces the need for self-advocacy and community-focused solutions.

The financial burdens carried by Black women are often compounded by the high costs of education, caregiving responsibilities, and rising housing prices. For those who are already feeling the pinch, this lack of faith in government support leaves many feeling left behind and uncertain about where to turn for help.

Retirement isn’t the only financial concern weighing heavily on voters. According to the BlackRock survey, less than 40% of voters have an emergency fund with more than $10,000 in savings, and 26% reported having no readily available savings at all. This lack of financial cushion can create a dangerous cycle, where people are unable to save for retirement because they are constantly trying to manage immediate financial needs.

For Black women, who are often heads of households and primary caregivers, building an emergency fund can be even more challenging. The weight of student loans, rising childcare costs, and underemployment creates a cycle where saving for both emergencies and retirement feels impossible.

Taking Control of Your Financial Future

Though the survey paints a grim picture, there are steps Black women can take to secure their financial futures. Building financial literacy, investing in retirement accounts early, and seeking out resources designed to support women of color can help close the savings gap.

Start small, save regularly: Consistent, even small contributions to a retirement fund like a 401(k) or IRA can grow over time, especially if your employer offers matching contributions.

Budget for the future: It’s easy to focus on immediate expenses, but setting aside a portion of your income for future goals can ease retirement anxiety.

Get financial advice: Consider seeking help from financial advisors or institutions that specialize in helping Black women build wealth. Organizations like the National Coalition of 100 Black Women and The Black Women’s Wealth Alliance offer support and guidance tailored to our unique challenges.

As we head into a critical election season, it’s clear that the retirement savings crisis isn’t just a political talking point—it’s a real concern affecting the daily lives and futures of millions of Americans, particularly Black women. Now more than ever, we must take charge of our financial destinies, advocating for policies that support retirement savings while taking actionable steps to secure our futures.