At a Glance | July 15, 2021 Differences in Individual Account Retirement Plans by Race and Ethnicity An Analysis of the 2019 Survey of Consumer Finances IA PLAN UTILIZATION Percentage of Families With IA Plans and the Median Amount Held in Them, by 1 Race/Ethnicity of Family Head Individual account (IA) retirement plans have become Percentage of Families Who Median Plan Balances of Those Have an IA Retirement Plan Having a Plan (in thousands) the dominant source of retirement assets for 2019 35% $35 Black private-sector retirees. IA plans 2016 34% $26.3 include employment-based 2010 33% $22.4 defined contribution (DC) plans 2007 37% $32.1 such as 401(k) plans, Keogh plans for the self-employed, and 2019 26% $31 Hispanic individual retirement accounts 2016 30% $24.5 (IRAs) for savings outside of the 2010 28% $22.4 workplace. 2007 31% $21 However, families with minority 2019 57% $80 White heads were much less likely to 2016 60% $81.9 have IA retirement plans, and 2010 58% $62.4 when they did own these plans, 2007 58% $65.4 the median amount held in 1 2019 53% $49 them was significantly less Other than for those with White, 2016 48% $56.4 non-Hispanic heads. 2010 42% $47.1 2007 51% $44.4 SHARE OF IA ASSETS: Distribution of Families’ Plan Assets in DC Plans vs. IRAs, DC PLANS VS. IRAS by Race/Ethnicity of Family Head Families with Black and Hispanic Defined Contribution Plan IRA heads had higher proportions of assets in defined contribution Black 77% 23% plans. By contrast, families with White, non-Hispanic heads had Hispanic 77% 23% a larger share of their IA plan White assets in IRAs. 48% 52% Other 58% 42% 1. The race/ethnicity categories from the Survey of Consumer Finances are self-identified and include White, non-Hispanic; Black/African American; Hispanic; and other, which consists of those races/ ethnicities not defined in the three prior categories, such as Asian Americans and those who identify as multiracial. SCF is at the family level, so the characteristics of the family head (or the reference person) are used to categorize the families. SOURCE: Copeland, Craig, “The Status of American Families’ Accumulations in Individual Account Retirement Plans and Differences by Race/Ethnicity: An Analysis of the 2019 Survey of Consumer Finances,” EBRI Issue Brief, no. 527 (March 11, 2021). © 2021 EBRI This report is copyrighted by the Employee Benefit Research Institute (EBRI). You may copy, print, or download this report solely for personal and noncommercial use, provided that all hard copies retain any and all copyright and other applicable notices contained therein, and you may cite or quote small portions of the report provided that you do so verbatim and with proper citation. Any use beyond the scope of the foregoing requires EBRI’s prior express permission. For permissions, please contact EBRI at permissions@ebri.org.