In an era when financial security during retirement depends largely on personal savings and investments, African American and Hispanic employees of companies that offer 401(k) plans risk financial insecurity during their "golden years." Compared to Asian and white employees, African American and Hispanic workers are less likely to participate in 401(k) plans, and when they participate they are likely to contribute less; they also are more likely to deplete their savings by taking loans and withdrawals from their accounts. The report 401(k) Plans in Living Color: A Study of 401(k) Savings Disparities Across Racial and Ethnic Groups--The Ariel/Hewitt Study features details about these savings disparities, based on information collected for 2007 for nearly three million employees of 57 of the largest U.S. companies across a variety of industries and sectors. Recommendations to narrow the savings disparities are provided in the report as well.

This study was conducted by the Ariel Education Initiative (the nonprofit affiliate of Ariel Investments) and Hewitt Associates (a global human resources consulting and outsourcing company), in collaboration with the Joint Center for Political and Economic Studies, the National Council of La Raza, the National Urban League, the Chicago Urban League, and the Raben Group.