Middle-class blacks are more likely than whites to have reduced their saving and investing to make it through the recession, according to the 2010 Ariel Black Investor Survey released today.
It found that nearly half of all blacks, compared with 31 percent of whites with household incomes of at least $50,000, dipped into savings to make ends meet in the last two years.
Among blacks who participate in 401(k) plans, 27 percent reduced the amount they contribute per month, compared with 16 percent of whites. Twenty-two percent of non-retired blacks borrowed or withdrew money from a retirement account, compared with 14 percent of whites. The median amount blacks contributed to their retirement plans is $230 per month, compared with $337 a month contributed by whites, the survey found. The findings mark the first time in a decade that black households have reported saving less than $200 per month.
“In times of economic hardship, people have to make difficult decisions,” Ariel Investments President Mellody Hobson said.
But she noted the resulting trade-offs mean many blacks are slipping even further behind.
Since 1998, the survey has consistently found blacks save and invest less than whites of similar incomes. This year, the median amount black households reported saving monthly is $189, compared to $367 among whites.
Sixty percent of blacks said they invest in the stock market, compared with 79 percent for whites.
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