Roadmap to Generational Wealth: Retirement
What you need to know about Retirement
Retirement planning helps you build income for the years when you may work less or stop working. That income can come from workplace retirement plans, personal retirement accounts, pensions, Social Security, and other assets.
Retirement security is not equal across households. In the Federal Reserve's 2025 survey, 49% of Black adults who had not retired had a tax-preferred retirement account, compared with 69% of White adults. Only 23% of Black adults said their retirement savings were on track, compared with 43% of White adults.
These differences are not only about saving habits. Income, access to the workplace, job stability, caregiving, and other economic conditions affect how much workers can put away. The NAACP supports protecting Social Security and helping workers preserve retirement savings when they change jobs.
How to strengthen your retirement plan
- DO learn what retirement benefits your employer offers, including any matching contributions and the rules for when employer contributions become yours.
- DO contribute consistently when you can and consider increasing your contribution as your income or financial situation improves.
- DO review the fees and investment options inside your retirement plan because fees can reduce your long-term returns.
- DO understand your options when changing jobs before moving or withdrawing money from an old retirement plan.
- DO check your Social Security account for personalized benefit estimates and see how different ages of when you claim can affect your monthly benefit.
- DO estimate your future expenses and compare them with the income you expect from retirement accounts, pensions, Social Security, and other sources.
Don'ts:
- DON'T automatically cash out a workplace retirement account when changing jobs because taxes and early withdrawal penalties may apply.
- DON'T assume Social Security will cover every retirement expense. Build your plan around the retirement income sources that are actually available to you.
- DON'T trust retirement investments that promise high guaranteed returns or pressure you to act quickly. These are common warning signs of investment fraud.