The relative paucity of investments held by blacks and Hispanics tracks with previous studies, something that experts call an outgrowth of the gaping wealth disparities separating the races.
Not only are African Americans and Hispanics less likely than whites to own retirement accounts or investment securities, they also are far less likely to own homes, which remains the largest engine of wealth creation for most Americans. And when they do own homes, they tend to have less equity in them, in large part because they live in communities where prices appreciate more slowly, many analysts say.
Now, with the big increase in foreclosures and large drops in housing prices that came with the recession, those disparities have grown. "I'm sure I'm like most average Americans in that our only asset is our residence," said Jonathan Williams, an African American who lives in Cranston, R.I. "And that value is way down."
Although the recession hurt all Americans, its toll was especially severe among African Americans and Hispanics, who were most likely to lose jobs, face foreclosures and lose health insurance coverage, the poll found.
The previous economic expansion was marked by weak job growth and income gains only for the very best-paid workers. A series of studies have found that the lack of wealth and the smaller incomes typically earned by African Americans and Hispanics - whose median incomes, respectively, are only 82 and 73 percent that of whites - limits how much they save for retirement.
Studies have found that although blacks and whites have roughly equal access to retirement plans at work, Hispanics trail far behind. And even when they do have access, African Americans and Hispanics are less likely than white and Asian workers to participate in them, according to a 2009 report by Ariel Education Initiative and Hewitt Associates.
When blacks and Hispanics participate in retirement plans at work, the study found, they save less. In addition, both African Americans and Hispanics were far more apt than whites to tap their retirement money to deal with financial emergencies, further eroding their retirement security, the Ariel-Hewitt study found. Minorities also are more likely to stick to conservative investments, which historically pay far less over the long haul.
For workers of all races, the most conservative investments seem to make the most sense, particularly given the market volatility that came before and during the downturn. Dawn Marie Castillo, a federal employee in San Diego, said her Thrift Savings Plan retirement account "took a humongous hit" during the recession.
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