For Immediate Release
Report: 100 CEOs Have as Much Retirement Wealth as 41% of All U.S. Families, 59% of African-American Families, and 75% of Latino Families
WASHINGTON - The Institute for Policy Studies has just released dramatic figures on the retirement savings gap between those at the top of corporate America and the rest of us. The report, published at 7 pm Eastern on December 15, has received early coverage in USA Today, Bloomberg, Fortune, and Mother Jones.
A Tale of Two Retirements and related graphics are available here.
Just 100 CEOs have company retirement funds worth $4.7 billion — a sum equal to the entire retirement savings of the 41 percent of U.S. families with the smallest nest eggs.
This $4.7 billion total is also equal to the entire retirement savings of the bottom:
- 59 percent of African-American families
- 75 percent of Latino families
- 55 percent of female-headed households
- 44 percent of white working class households
On average, the top 100 CEO nest eggs are large enough to generate for each of these executives a $253,088 monthly retirement check for the rest of their lives.
- Among ordinary workers, those lucky enough to have 401(k) plans had a median balance at the end of 2013 of $18,433, enough for a monthly retirement check of just $101.
- Of workers 56-61 years old, 39 percent have no employer-sponsored retirement plan whatsoever and will likely depend entirely on Social Security, which pays an average benefit of $1,239 per month.
With nearly $3 billion in special tax-deferred accounts, Fortune 500 CEOs stand to gain enormously from Trump’s proposed tax cuts on top earners.
- If President-elect Donald Trump succeeds in cutting the top marginal tax rate from 39.6 percent to 33 percent, Fortune 500 CEOs would save $196 million on the income taxes they would owe if they withdrew their tax-deferred funds.
- Unlike ordinary 401(k) holders, most top CEOs have no limits on annual contributions to their tax-deferred accounts. In 2015 alone, Fortune 500 CEOs saved $92 million on their taxes by putting $238 million more in these accounts than they could have if they were subject to the same rules as other workers.
- Michael Neidorff, the CEO of Centene, a provider of health plans to Medicaid recipients and other low-income Americans, has nearly $140 million in his deferred compensation account, up 658 percent since the 2010 launch of Obamacare.
The retirement asset gap between CEOs mirrors the racial and gender divides among ordinary Americans.
- The 10 white male CEOs with the largest retirement funds hold a combined $1.4 billion, more than eight times more than the 10 CEOs of color with the largest retirement assets and nearly five times as much as the top 10 female CEOs.
“While slashing jobs and benefits for ordinary workers, CEOs of large companies have been feathering their own nests,” says Sarah Anderson, report co-author and director of the IPS Global Economy Project. “It’s no wonder so many American workers are concerned about whether their golden years will be tarnished by financial stress.”
This is the Institute’s second report on the CEO-worker retirement gap. Last year’s edition received coverage in Bloomberg, USA TODAY, Reuters, CNN Money, The Guardian, CBS Moneywatch, and Fortune, among other outlets.
Our pandemic coverage is free to all. As is all of our reporting.
No paywalls. No advertising. No corporate sponsors. Since the coronavirus pandemic broke out, traffic to the Common Dreams website has gone through the roof— at times overwhelming and crashing our servers. Common Dreams is a news outlet for everyone and that’s why we have never made our readers pay for the news and never will. But if you can, please support our essential reporting today. Without Your Support We Won't Exist.
Please select a donation method:
Institute for Policy Studies turns Ideas into Action for Peace, Justice and the Environment. We strengthen social movements with independent research, visionary thinking, and links to the grassroots, scholars and elected officials. I.F. Stone once called IPS "the think tank for the rest of us." Since 1963, we have empowered people to build healthy and democratic societies in communities, the US, and the world. Click here to learn more, or read the latest below.