by Mitti Hicks
July 11, 2025
44% of Black American retirees left the workforce earlier compared to 32% of non-Black retirees.
A new report from the Employee Benefit Research Institute shows nearly half of U.S. Black retirees left the workforce earlier than planned due to a health issue or disability. Forty-four percent of Black American retirees left the workforce earlier compared to 32% of non-Black American retirees.
Researchers polled more than 2,700 workers and retirees with an oversample of non-Hispanic Black respondents. According to the survey, Black Americans are more likely to have lower incomes and fewer assets, forcing many to go back to work. Sixty-six percent of Black employees reported that they needed the income to make ends meet, compared to 35% of their non-Black peers.
Black American Retirees Report Little Confidence in Savings
While confidence is lower for all Americans with lower incomes, Black Americans with incomes of less than $35,000 and those with incomes between $35,000 and $74,999 were more likely to be confident than non-Black Americans at the same income levels. There was no difference in confidence among those with incomes of $75,000 or more.
Even with higher incomes, Black Americans are still hesitant about retiring early. Those with incomes of $75,000 or more, 63% of Black Americans considered debt a problem for their household, compared with 45% of non-Black Americans. As a result, Black Americans in the same income groups say they are more likely to consider debt as impacting their ability to save for retirement or live comfortably in retirement.
“Black Americans reported disproportionately lower financial resources, and how they feel about retirement and financial security is clearly impacted by having less resources,” researchers concluded in the study. “In particular, Black retirees are struggling with a higher likelihood of their retirement lifestyle being worse than expected and having to retire earlier than planned because of a health problem or disability.”
While there is no magic number for retirement, financial analysts generally recommend having 10 times your annual income saved by the time you reach 67. If you earn $100,000 per year, you would aim to have $1,000,000 saved by the time of retirement.
Platforms such as SmartAsset offer resources that break down how much people should save each month, taking into account factors like state, expenses, and overall salary.
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