Millions of Americans aren't saving enough for retirement, but African American and Latino investors, on average, are further behind than whites and are more likely to be a greater burden to their families because they save too little and invest too conservatively, new research has found.
"It's extraordinarily disconcerting," said Mellody Hobson, president of Ariel Investments, which along with benefits firm Hewitt Associates conducted a study of 401(k) participants.
"No one is doing a good job preparing for retirement, and [minorities] are doing worse," Hobson said. She said people do not want to be a burden to their families but are unknowingly setting themselves up for that.
Although some people assume that insufficient savings are a result of low incomes, Hobson said her research indicates the problems come from behaviors such as waiting too long to start investing, borrowing too much from 401(k) plans and avoiding stocks.