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“Green” Society
By Daphne | October 11, 2007
I saw this article and (unfortunately) it reassured me that our country is moving closer to being a “green” society. Not green as in ecofriendly but green as in money focused and creating a greater divide between the haves and have nots. The article goes on to say that only 25% of white Americans participate in company retirement plans. Basically, our nation needs to get on the stick when it comes to preparing for our financial futures.
NEW YORK (Oct. 11) - Employers have begun to discover troubling racial differences within their 401(k) retirement plans, a gap they say could leave today’s black workers far less financially prepared for retirement than whites.
Investor surveys and research by two large employers strongly suggest that blacks participate in retirement plans at far lower rates and are much less likely than whites to invest in the stock market. An industrywide study of 401(k) plan activity by race has never been conducted.
No matter what you think about the Social Security program, there have been people who have relied on Social Security as their income in their golden years; irrespective of color. When you have people who are employed by a company that offers 401(k) plans and those explaining the plans have little or no experience doing so. I know people who cashed in their 401(k)s when they changed companies because they left the company. These were not black workers.
I also know that if you are not accustomed to saving money, as most Americans are these days, then any money taken out of your check that doesn’t have to be is not looked upon as a welcome deduction. Right now, I have a couple of younger friends and relatives who are not happy about having their check decreased for “retirement” that they will not see for at least another 30 years.
If you are making more, no matter what your ethnic background is, you would be more likely to participate in a retirement plan because you may have a lifestyle that you have become accustomed to and want to maintain it. Also, if you have some understanding about a retirement plan and the likelihood that you will not receive Social Security benefits you want to be able to do things like… eat, have a place to sleep and possibly get out and enjoy your retirement so you save something. There are companies that still offer pensions but not everyone is in that type of career.
Years ago, when a former employer offered a 3% matching program I jumped at it. I coaxed my friend and coworker to do it as well. I wasn’t getting paid a lot but I did figure out that if I contributed 7% and my boss was contributing 3% I was really gaining something. I had other goals in mind, so the seven percent was what I could afford. I was in my twenties but I already had another retirement account. I wasn’t looking at this as my only source of savings for my future.
Financial education begins at home. For the new “green” class, people received their financial education from somewhere - even if it was borne out of greed, talent or luck.
As a whole, Americans should be worrying about people who aren’t saving at all. It is easy to get trapped into the spend now and pay later mentality. How many really sexy, interesting ads do you see on television for retirement accounts are geared toward people who are more than 2 decades away from retirement? None that I have ever seen. All the ads are for people close to retirement age themselves wanting to leave work. I am a saver, but I got some of this education at home. I don’t completely deprive myself of everything but I don’t neglect my savings.
The last I checked 25% is not a majority. White, black or otherwise… we need to have people stand up for less consumerism and materialism and more for good stewardship and wise spending practices!
Topics: October 2007 |