Preparing for retirement is hard– here’s how to make it easier

By Tashi McQueen
AFRO Staff Writer
tmcqueen@afro.com

Saving can be hard for anyone, but for African Americans– who have to fight bias and discrimination on multiple financial fronts– it can be even harder. 

This reality is why people like Jason Brown, a stock market expert and founder of the Brown Report, aim to help Black Americans as they navigate systemic challenges on the way to financial wellness. With the Brown Report, the finance wiz aims to provide stock market education to the masses. 

He recently shared perspectives on the plight of Black Americans who are saving for retirement and the best ways to persevere through those obstacles. 

“We’ve historically been underpaid compared to our counterparts,” said Brown, 43. “We’ve had less disposable income to put away. We’re spending a good portion of our lives trying to meet our basic needs.” 

Brown pointed out how this results in Black Americans starting retirement savings later in life than other groups. 

“I also have seen a financial education gap for Black Americans,” said Brown. “They get into trouble in their early years– college or early into marriage. They have to spend a good portion of their adult life correcting bad credit and getting into debt, versus spending their adult life putting money away or investing and allowing it to grow and compound.”

He recommends Black Americans make sure they are educated about the status of their own finances.

“Know the numbers,” said Brown. “If you don’t know the numbers, you can’t have a plan. If you don’t have a plan, you’re never putting anything away to work towards.”

Brown said people should know how much they want to save annually toward retirement based on the lifestyle they want to live. They should also know the stock market numbers, what they can cut from their lifestyle to help meet their goals and what investment accounts may provide the best returns. 

For families caring for a loved one with special needs, planning for retirement can be even more complex. Mary Anne Ehlert, president and founder of Protected Tomorrows, spoke to those challenges in an AFRO interview. Protected Tomorrows is a financial planning company that aims to help people with special needs live more securely and independently.

“Families of persons with disabilities always have in the back of their minds, ‘when I’m gone, how will my loved one be protected, have a place to live and have access to the care they need?’” said Ehlert. “That’s why financial planning for special needs families takes on many different dimensions. All of these dimensions must be considered if a family is to achieve peace of mind.”

In 2024, the University of New Hampshire Institute on Disability found that more than 3.6 million Black adults are living with disabilities. African-Americans with disabilities are 51 percent more likely to live in poverty, 84 percent more likely to lack proper housing and 22 percent less likely to have a job.

“If you think of future financial planning as a pie, there are pieces we already know…college funding, retirement planning, investment strategies, estate planning, tax planning and risk management,” said Ehlert. “For a family with a special needs family member, there’s another big slice: special needs planning – which affects all of the other pieces.”

Ehlert recommends that caregivers ensure their retirement plan includes a line item and expense summary for the future care of the loved one with disabilities, at all stages of their life. She also recommends taking on the process holistically.

Brown noted that access to financial education has been easier in recent years with the rise of Black and Brown creators online sharing their wealth journeys and providing advice. 

Creators are sharing how they got out of debt and how they learned to stop trying to look wealthy and opted to work to get out of debt and be financially stable instead.

Brown debunked a misconception that Black Americans typically have: that retirement has to happen late in life or after 40-plus years of service for a job they dislike.

“Retirement can happen at any age,” said Brown. “I think the new definition of retirement is being financially independent and having a choice of if you want to work or not.”