By Tim Grant
Pittsburgh Post-Gazette
(TNS)
The retirement savings gap in America isn’t just widening—it’s showing sharp disparities along racial and gender lines.
A new analysis from human resources firm Dayforce, drawn from 1.2 million employee records from 2021 to 2024, reveals stark discrepancies in who is building financial security for the future and who is being left behind.
Race is a big factor, the data shows.
In 2024, 84.6% of white employees participated in their company 401(k) plan. Participation fell to 68.2% for Black employees and just 61.1% for Latino employees.
Gender disparities tell a similar story: Among full-time employees, men participated in 401(k) plans at an 80% rate last year compared with 76% of women. Men also contributed more, socking away an average of $10,974 versus $8,096 for women.
“Since 2021, total employee and employer contributions as well as savings rates, all increased for the overall workforce. But during that same period, the gap in participation between men and women widened,” wrote Jason Rahlan, global head of sustainability and impact at Dayforce.
Dayforce, based in Minneapolis, is a global human resources company that provides all-in-one solutions for companies such as payroll, human resources, benefits and other operations.
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The report is framed against the backdrop of two seismic economic blows—a once-in-a-century pandemic and the highest inflation surge in four decades. The numbers paint a picture of a recovery that has left millions on the outside looking in.
“The financial impact on families has been deep and lasting,” the report notes. “The reality is that tens of millions of workers still haven’t reaped many of the benefits. The market is at an all-time high, but nearly 4 in 10 Americans don’t own a single stock.”
Despite inflation trending downward and nearing the Fed’s annual target, the cost of housing and nearly all consumer goods remain substantially higher than before the pandemic, Mr. Rahlan wrote.
“Worse still, household debt has reached a record high, personal savings rates are lower than before the pandemic, and nearly three-quarters of Americans say that the economy is causing them significant stress,” he wrote.
The racial divide in retirement savings widens when looking at financial strain inside 401(k) accounts.
In 2024, more than a quarter—26.4%—of Black and Latino 401(k) savers had an active loan from their accounts, compared to 14.9% of white workers. Overall, 16.2% of plan participants had an active loan from their 401(k), according to Dayforce.
Other racial disparities: White workers contributed $11,676, compared to $5,404 for Black workers and $5,389 for Latinos. The overall saving rate for whites was 10%; Blacks was 6.8%; and the Latino savings rate was 7.5%. The average overall savings rate was 9.3%
There also were several notable gaps between older and younger generations.
For example, the participation rate for baby boomers [1946 to 1964] was 78.8%, while it was 82% for Gen X [1965 to 1980]; 80.2% for millennials [1981 to 1996]; and just 68.7% for Gen Z [1997 to 2012].
In addition, total annual contributions for baby boomers was $11,481, while it was $11,597 for Gen X, $9,005 for millennials and only $4,958 for Gen Z. Full-time Gen Z workers have had a faster rate of growth in participation and contributions than all other generations since 2022, Dayforce said.
Since 2022, Gen Z participation in 401(k)s rose from 64% to 68.7%, and total contributions rose 24% from $3,985 to $4,958.
For Black and Latino workers, the gaps in participation, dollars contributed and loans all grew since 2022 compared to their white counterparts.
Income also played a big role in who saved and how much.
In that same time, participation rates, contributions and overall savings for workers making less than $150,000 all declined, with participation declining dramatically for those making less than $50,000 a year.
“The evidence is clear that not everyone is benefiting equally from from recent gains in addressing our nation’s retirement security crisis,” Mr. Rahlan wrote.
Photo credit: XH4D/iStock
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© 2025 the Pittsburgh Post-Gazette. Visit www.post-gazette.com. Distributed by Tribune Content Agency LLC.
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Tags: 401(k), Benefits, employees, gender gap, Human Resources, Payroll, racial gap, retirement plans, workers
