The Current Population Survey (CPS) is a valuable source of data because it provides worker-level demographics, making it possible to determine differences in employment-based retirement plan participation by worker characteristics. This Fast Fact examines the CPS data to see how plan participation differs by race/ethnicity, and how those differences are affected by other socioeconomic and demographic variables like income, age, educational status, gender, and employer size.
Figure 1 Figure 4 Age Em pl — oy e C r ont Size rol — ling Emp for la oym ge doe ents -ba not se d rer duc etire e m the ent ga pp lain n p re atritrie cm ipa ent tion pla inc n pa rea rtse icd ipa as tie om n pl by oye rac re s,i z though e (num be beirng of ol der is Endnotes Percentage of Full-Time, Full-Year Wage and Salary Workers Ages Percentage of Wage and Salary Workers Ages 21 –64 Who a em ssoc ploye iatee d s)w iinc th rh ea ighe sedr , w pa ir th tic publ ipati ic on -se (F ctior gur w eor 3) ke . F rs or sur exa pa m ss pl ing e, itn he t he pa r younge ticipatist on a ge leve ca ls teof gor the y ( w 21 or –ke 24) rs , 2 at 8. t9 he pe la rr cge ent st 21 –64 Who Participated in an Employment-Based Retirement Plan, 1 Participated in an Employment-Based Retirement Diversity, Equity, and Inclusion Council of pr iW vahi te- te se w ctor orke em rs pl pa oye rtic ri s pa (F te igur d in e a 6) pl . A an c,r oss com apa ll reem d p w loy ithe r 19. siz 7e pe s, r W cehi ntt eof w B or la ke ck rs w w or er ke e r the s a nd most 20 .l7 ike pe ly r cte ont be of The survey of a particular year gives results about the prior year, e.g., the 2019 survey gives results for 2018. by Race/Ethnicity, 2018 –2023 Plan, by Race/Ethnicity and Education, 2023 H pair spa ticini pa ct iw ng orike n r a s.pl Me an.a W nw hi hi le le t,he at ga the p a in gepa s w rtiic th ipa the tion high bee tw ste re en tiW rem hie tnt e a pl nd an “ o pa the rtirc ”i pa wor tion ker(s 5na 5–r6 row 4), ed 68. a 0t pe the rc le ant rge of r 2 See Copeland, Craig, and Kyle Bedu, “Retirement Plan Participation and the Current Population Survey: The Impact of the February 20, 2025, #524 White Black Hispanic Other e W m hi pl te oye wor r si ke ze rs s,pa Br la tic ck ipa and ted H in ispa a pl niacn w in or2 ke 02 r3 pa , w rthi icl ie pa 57. tio9 n pe cont rce inue nt of d B to la fc ak ll w be or low ker ts he and le ve 40 ls .5 of pe W rchi ent te of w or Hke ispa rs. ni F cor 90% White Black Other Hispanic Retirement Account Questions, 2018-2023,” EBRI Issue Brief, no. 628 (Employee Benefit Research Institute, January 16, 70% w exa orm ke pl rs e,di ad m tong he sa w m or eke . W rs hi alte e not mpl shown oyers w he ith re 500 , nat –i999 ve-bo em rn pl H oye ispa es, ni 7 c 0 w .2 or pe ke rr cs ent pa r of tic W ipa hi te te d w ator hi ke ghe rs rw le er ve e lrs e ttiha rem n ent 2025) for complete results from the most recent CPS data. 68.9% nonna plan pa tirve tic -i bor pant n s H , icspa omni pa cr e w d or w ke ith rs 4a6 c.r5 oss pe r ec ae cnt h a of ge B gr laou ck p. w orkers and 41.5 percent of Hispanic workers. Among 68.5% 80% 67.9% 3 65% 67.3% See Copeland, Craig, and Lisa Gree 66.9% nwald, “2021 Retirement Confidence Survey: A Closer Look at Black and Hispanic employers with 10 65.9% –24 workers, the participation level for White workers was 42.2 percent, vs. 29.0 percent and 65.1% Retirement Plan Participation, by Race/Ethnicity, 2023 64.4% Americans,” EBRI Issue Brief, no. 530 (Employee Benefit Research Institute, June 10, 2021) for some of the reasons that 63.9% 1 9.7 percent for Black and Hispanic workers, respectively. Hispani 63.3% c workers had the lowest share participating in 70% Figure 3 60% there is lower participation among minority workers. The 2025 Retirement Confidence Survey will have a special focus on a plan in each employer size group. Percentage of Wage and Salary Workers Ages 21 –64 Who Participated in an 59.3% Black Americans to build on the results from the 2021 survey. Introduction 58.0% 55% 60% Employment-Based Retirement Plan, by Race/Ethnicity and Age, 2023 56.5% 56.2% 55.2% Figure 6 55.1% 53.6% White Black Other Hispanic Since the Current Population Survey (CPS) added several new variables relating to retirement accounts starting in Percentage of Wage and Salary Workers Ages 21 –64 Who 50% 52.0% 50% 1 80% 2019 (2018 results), new methodological estimates of employment-based retirement plan participation from the Participated in an Employment-Based Retirement Plan, 44.5% 2 45% ### 42.6% CPS have been deby vel ope Race/E d thatth anicit re consi y and stent Emplo with oty he er r da Siz tae (Nu sourc4 e mb 2s .6on %er re of tir Emplo ement pl ya ee n s), part2023 icipation. The data 41.8% 41.8% 40% provided by the C 39.8% PS are valuable because the data are at the worker level, as opposed to the employer level, 70% 90% White Black Other Hispanic 40% making it possible to determine differences in retirement plan participation by worker characteristics. This Fast 30% Fact examines how plan participation differs by race/ethnicity, as well as how those differences are affected by 60% 80% 35% other socioeconom 2018 i c (A a ) nd demogra 20 phi 19c variables li20 ke 20 income, age, 20 educ 21 ational status 20,22 gender, and em 20pl 23oyer size. 20% 70% 50% Source: Employee Benefit Research Institute estimates of the March Current Population Survey 2019–2024. Overall Race/Ethnicity Participation 10% 60% 40% Race/Ethnicity Definitions 0% No High School Diploma High School Diploma Some College Bachelor's Degree Graduate/Professional Degree 50% The race/ethnicity categories are determined by the self-identified responses to the race and ethnicity 30% Figure 2 question So su rc in e:t Em he pl oC yeur e Be re ne nt fit Res Popul earch a Int si tion tute eS stiur mave tesy of a thnd e 202i4nc Malrc ude h Cu rre W nhi t Potpe u,la non tion Su -rv H ei yspa . nic; Black/African American; Percentage of Wage and Salary Workers Ages 21 –64 Who Participated 40% Hispanic; and “other.” The “other” category consists of those races/ethnicities not defined in the three prior 20% in an Employment-Based Retirement Plan, by Race/Ethnicity With categories, such as Asian Americans, as well as those who identify as multiracial. All workers indicating 30% Hispanic Detail and Figur Ann e 5 ual Earnings, 2023 that they have a Hispanic origin are only included in the Hispanic category. Percentage of Wage and Salary Workers Ages 21 –64 Who 10% White Black Other Hispanic Hispanic–Native Born Hispanic–Nonnative Born 20% Participated in an Employment-Based Retirement 90% Participation in employment-based retirement plans increased slightly from 2018–2023, but overall levels of Plan, by Race/Ethnicity and Gender, 2023 0% participation differed greatly by race and ethnicity (Figure 1). For instance, while the percentage of White workers 10% 21–24 25–34 35–44 45–54 55–64 80% 70% All White Black Other Hispanic participating rose from 65.9 percent in 2018 to 68.5 percent in 2023, the participation level for Black workers was 63.2% only 52.0 percent in 2018, rising to 56.5 percent in 2023. The participation levels of those in the “other” 0% Source: Employee Benefit Research Institute estimates of the 2024 March Current Population Survey. 70% 59.6% Fewer Than 10 10–24 25–99 100–499 500–999 1,000 or More Public Sector race/ethnicity category were between those of the White and Black workers, growing closer to the level of White 58.4% 60% workers over ti 55.1% me. Finally, Hispanic workers had the lowest participation levels, going from 39.8 percent in 2018 53.7% 53.8% 60% to 41.8 perc So ent urc ei :n Em 202 ploye3 e . Be nefit Research Institute estimates of the 2024 March Current Population Survey. Educational Attainment — Similarly to income and age, higher educational attainment was correlated with higher 50.0% 48.2% 50% e mployment-based retirement plan participation levels across all races/ethnicities (Figure 4). Among those 50% without a high school diploma, White and Black workers had the highest levels of participation at 30.3 percent Conclusion Demographic Characteristics and 27.8 percent, respectively, while workers in the “other” race/ethnicity category and Hispanic workers had 40 40% % 38.0% lower participation levels (20.3 percent or less). White worker participation became more disparate starting When examining participation by race/ethnicity, 34.5% White workers are found to have the highest levels of Income — Relative to White workers, Hispanic workers saw lower levels of participation that persisted across among those with a high school diploma, before the racial participation gap narrowed again among those with a participation, while Hispanic workers have the lowest, and this pattern holds across income, education, age, 30% 30% earnings levels, whereas the remaining race/ethnicity categories’ participation levels grew closer to those of White graduate degree, the highest educational attainment category. Within this group, White, Black, and “other” gender, and employer size. The low levels of Hispanic participation are driven by the especially low levels of workers as earnings increased (Figure 2). However, the differences between Hispanic workers’ participation levels workers all had participation levels over 70 percent, while Hispanic participation continued to lag. participation of nonnative-born Hispanic workers. While there are many non-racial socioeconomic and 20% and White workers’ participation levels narrowed for native-born Hispanic workers as earnings increased, demographic factors that correlate with having more or less plan participation, racial/ethnicity gaps in 20% matching the result among the remaining race/ethnicity categories. In contrast, the participation levels among the Gender — The employment-based retirement plan participation level of males was slightly higher than that of participation exist even when controlling for these factors. Thus, further research is needed to better understand 10% 3 nonnative-born Hispanic workers persisted below those of all the remaining workers as earnings increased, females — 55.1 percent vs. 53.7 percent (Figure 5). Participation was highest among both male and female White the causes of the persistently lower participation of non-White workers. As this research is being further resul1 t0 ing % in the overall Hispanic worker participation levels being comparably lower. For example, among workers. Within each gender, the order of participation after White workers was consistent from highest to lowest: devel0% oped, plan sponsors can look to employee resource groups (ERGs) to help identify other factors that might Less Than $20,000 $20,000–$39,999 $40,000–$74,999 $75,000 or More workers with earnings of $75,000 or more, native-born Hispanic workers had a participation level of 74.0 percent, “other,” Black, and then Hispanic workers. However, White and “other” male workers had slightly higher levels be resulting in disparate retirement savings behavior. Financial wellbeing benefits can also be a source of compared with 62.4 percent for nonnative-born Hispanic workers. of participation than women of the corresponding race/ethnicity, while Black and Hispanic female workers had assistance tha Sot u rc pl e:a Em n pspons loyee Ben or efis t Res caen arcpr h In ovi stitude te e st tio mahe tes l op f th t ehe 202 ir 4 M eam rchpl Cu oye rrent e Po s pbe ulatito tn e Su r m rvea y.nage their individual budgets, which 0% higher participation levels than tM he aleir male counterparts. Female could result in higher retirement plan participation. Source: Employee Benefit Research Institute estimates of the 2024 March Current Population Survey. © 2025, Employee Benefit Research Institute, 901 D St. SW, Suite 802, Washington, DC 20024, 202/659-0670 | ebri.org E E E E EB B B B BR R R R RI I I I I o o o o on n n n n T T T T Twitt witt witt witt witte e e e er r r r r: : : : : @ @ @ @ @E E E E EB B B B BR R R R RI I I I I o o o o or r r r r twit twit twit twit twitter ter ter ter ter.....c c c c co o o o om m m m m/E /E /E /E /EB B B B BR R R R RI I I I I L L L L Lin in in in ink k k k ke e e e ed d d d dI I I I In n n n n: : : : : li li li li lin n n n nk k k k ke e e e ed d d d din in in in in.....c c c c co o o o om m m m m/co /co /co /co /com m m m mp p p p pa a a a an n n n ny y y y y/em /em /em /em /emp p p p plo lo lo lo loy y y y ye e e e ee e e e e- - - - -b b b b be e e e en n n n ne e e e ef f f f fit it it it it- - - - -r r r r re e e e es s s s se e e e ea a a a ar r r r rc c c c ch h h h h- - - - -in in in in ins s s s sti ti ti ti titu tu tu tu tute te te te te 4 2 5 6 3 28.4% 19.2% 30.3% 28.9% 16.6% 9.4% 27.8% 19.7% 20.2% 12.7% 9.5% 20.3% 28.5% 9.6% 17.1% 20.7% 42.4% 13.5% 29.0% 6.4% 30.2% 47.3% 56.8% 19.7% 37.5% 43.9% 37.4% 56.1% 38.9% 35.3% 56.6% 35.1% 31.2% 28.0% 36.3% 47.8% 21.1% 28.4% 27.8% 54.8% 65.1% 64.2% 16.6% 46.2% 51.4% 43.0% 55.5% 44.6% 61.4% 63.5% 39.0% 41.4% 37.7% 57.8% 70.2% 56.5% 46.5% 70.3% 68.2% 44.7% 65.0% 60.1% 52.1% 58.7% 41.5% 37.0% 62.3% 58.2% 71.2% 53.2% 39.1% 55.6% 82.0% 69.0% 74.8% 50.1% 79.0% 68.0% 80.1% 72.4% 57.9% 80.4% 69.6% 72.0% 74.2% 60.0% 74.0% 73.9% 64.6% 40.5% 62.4% 69.0%