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Same Income, Same 401(k), Different Account Balance:

The Critical Role of Retirement Plan Design in Addressing Racial and Gender Retirement Savings Gaps

America’s workplace retirement savings system plays an essential role in the financial lives of the millions of people who have access to a retirement plan at work. Unfortunately, the defined contribution system does not work as well for all individuals, as there are disparities across demographic groups. Morningstar Retirement, the Aspen Institute Financial Security Program, and the Defined Contribution Institutional Investment Association created the Collaborative for Equitable Retirement Savings (CFERS) to explore how and why these differences exist, going beyond existing research that only acknowledges that these gaps exist.

This summary provides an overview of our larger paper, How Large Are Racial and Gender Disparities in 401(k) Account Balances and What is Causing Them: Initial Findings from the Collaborative for Equitable Retirement Savings. Our data-driven analysis reveals potential solutions to make 401(k)s more inclusive.

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For a link to the full paper, click here.

For more information on The Collaborative for Equitable Retirement Savings (CFERS), click here.

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