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How Effective Might the Saver’s Match Be in Mitigating Race/Gender Disparities in 401(k) Plans

Evidence From the Collaborative for Equitable Retirement Savings Project

Aspen Institute Financial Security Program, DCIIA, and Morningstar Retirement have launched a joint initiative—The Collaborative for Equitable Retirement Savings (CFERS)—to examine the dynamics of DC retirement savings and identify disparities in outcomes based on race and gender. The analysis of anonymized plan data, coupled with qualitative, people-centered research, provide insights into specific actions toward racial equity within the DC system. In 2027, the Saver’s Match provisioned by Secure 2.0 will allow for millions of retirement savers in the U.S. to qualify for a match of up to $1,000 per individual from the federal government, depending on income. Based on analysis done with CFERS research with a set of behavioral assumptions, the Saver’s Match will have the potential to increase the retirement savings of a significant portion of the population, especially Black females. The Saver’s Match has the potential to help mitigate disparities in 401(k) savings for different groups based on race and gender, as demonstrated in this report.

What’s Inside:

  • The implications of the Saver’s Match on retirement savers
  • What groups, by race and gender, are most likely to benefit from the Saver’s Match
  • What this data means for the future of retirement savings
  • Upcoming CFERS projects

For more information on The Collaborative for Equitable Retirement Savings (CFERS), click here.

Read the first CFERS publication, How Large are Racial and Gender Disparities in 401(k) Account Balances and What is Causing Them, here.

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