Hurdles to Retirement Security: Exploring Race, Religion, and Savings Behavior

Retirement savings have become increasingly central to household financial security as defined contribution plans replace traditional pensions. Using nationally representative data from the 2019 Panel Study of Income Dynamics, this study applies a double‑hurdle model to examine the distinct factors shaping participation in retirement plans and contribution intensity. Results reveal persistent racial and ethnic inequalities: Hispanic, Black, and Mixed‑Race workers are significantly less likely to save and contribute markedly less than White workers, even after accounting for income, wealth, and employment characteristics. Religious affiliation also influences savings behavior, with Jewish contributors saving more and several other groups saving less than Mainline Protestants. Education, wages, home equity, and stock ownership consistently increase both participation and contributions, while larger family size and limited assets suppress savings. Robustness checks by the Heckman selection model confirms these patterns. The findings highlight structural and behavioral barriers that shape retirement preparedness and point to policy interventions—such as targeted financial education, automatic enrollment, and asset‑building supports—that may promote more equitable retirement outcomes across diverse U.S. populations.