Advisors of color are closing the racial savings gap, impacting their communities and beyond—here’s how. Fred Reish explains how plan advisors can help their plan sponsor clients avoid fiduciary litigation while protecting themselves. Brian Graff explains why the American Retirement Association supports the DOL’s latest proposed fiduciary rule. And we reveal the list of NAPA’s Top Women Advisors for 2023! It’s all in the latest issue.
COVER STORY: DIVERSE SUCCESS—HOW ADVISORS OF COLOR ARE CLOSING THE RACIAL SAVINGS GAP
The statistics surrounding the growing racial retirement saving and coverage gap are stark, and serious. A Government Accountability Office (GAO) report released last summer found that White households have roughly double the median retirement account balances as households of all other races.
Recent research from T. Rowe Price was more explicit, finding that “among private sector workers between 21 and 64 years old, only 40.5% of Black workers and 31.9% of Hispanic workers participate in a retirement plan, compared with 57.7% for white peers.”
It added that when work-based retirement plans are available, Black workers participate at a rate of 81.6%, with Hispanics at 82.2%, and White workers at 90.4%, reinforcing that coverage, or lack thereof, is an issue.
Closing the gap is an essential step toward achieving successful retirement outcomes for all Americans. While increasing the number of businesses offering a plan—especially those small- and medium-sized—is critically important, it should (and must) coincide with a long overdue increase in the number of advisors of color.
Encouraging more advisor representation through Diversity, Equity, Inclusion, and Belonging (DEIB) initiatives and outreach would lead to more tailored, culturally sensitive advice that would help communities of color build and secure their financial futures.
Indeed, it’s already happening with diverse NAPA members taking the lead and making an impact within the communities they serve. So, how are they doing it and what specific steps are they taking?
Several high-profile advisors weigh in.
LINK TO FULL ARTICLE: https://www.napa-net.org/the-magazine
