July 16, 2006


The Race Savings Gap (Michelle Singletary, July 16, 2006, Washington Post)

Some black workers may have less saved because they are counting on getting a pension, the survey found.

In the latest investor survey, two-thirds of employed blacks -- compared with about half of employed whites -- work for organizations with a traditional pension plan. Far more black than white workers surveyed (44 percent vs. 25 percent) have jobs in government, which are more likely to offer pensions.

But there is no assurance that the benefits for a traditional pension plan won't be changed for the worse or taken away. Just look at the corporate world.

Among families with an employment-based plan, the percentage with only a traditional pension plan decreased from 40 percent in 1992 to 24 percent in 2004, according to the Employee Benefit Research Institute.

"All across America, corporate pension funds are being frozen and many government pension systems are underfunded," pointed out Mellody Hobson, president of Ariel, a black-owned institutional money management firm and mutual fund company based in Chicago. "It's a national crisis that will hit blacks especially hard because we've all bought into the promise."

Of course, Democrats would prefer to keep them as permanent tax-eaters. It's the GOP, again, that wants to set them free.

Posted by Orrin Judd at July 16, 2006 8:31 AM

It's darn annoying for the media to constantly look only at melanin when encountering anomalies in statistics and not comparing like with like. The sensible comparison should be public sector vs private sector employees.

When are our darker-hued fellow Americans going to say, enough already?

Posted by: erp at July 16, 2006 9:59 AM

The problem is that Democrats have co-opted them into the public sector.

Posted by: oj at July 16, 2006 10:02 AM

Much as I hate to lump people together and always want to see people as individuals, in this case, it's impossible not to see middle class blacks as a bloc who must start thinking for themselves.

Republicans would be smart to address this population and separate them politically from their similarly hued fellows locked in the perpetual care of the poverty pimps.

Posted by: erp at July 16, 2006 12:09 PM

If you're a public sector employee, it's perfectly sensible to rely more on your pension (full pay after 20 years?) than someone in the private sector.

Posted by: David Cohen at July 17, 2006 1:44 AM

David, My point is that, as usual, the media is trying to drive a wedge between races by implying an unfairness where none exists.

Posted by: erp at July 17, 2006 7:51 AM