In the United States, Black Americans are particularly affected by retirement savings inequality, with 54% lacking adequate retirement funds due to systemic inequities. This issue is further highlighted by gender-based financial disparities, as shown in the 2021 OCED report, which reveals that women receive 33.7% less pension income than men.
In response to the issue, TIAA's #RetireInequality campaign launched the hip-hop single "Paper Right," highlighting the retirement savings crisis affecting Black Americans and women. This initiative, featuring stars like Wyclef Jean, aims to highlight and address the systemic financial disparities underscored in the 2021 Organization for Economic Cooperation and Development (OECD) "Towards Improved Retirement Saving Outcomes for Women" report, turning each song stream into a step towards financial education and equality."
Zara Mirza, Chief Brand Officer at TIAA, feels finding new methods of communication can drive real conversation for those facing inequalities and connecting with younger generations. "Music possesses an extraordinary ability to elevate awareness, inspire, and drive conversation among key audiences – including younger generations. While retirement may feel far away for younger Americans, the reality is that having these conversations now can help them achieve a financially secure future," stated Mirza. "The goal is for "Paper Right" to have real impact and spark thought among those starting in their careers to consider their financial future and retirement."
According to the TIAA press release, the #RetireInequality campaign emphasizes the critical need for early planning and saving, as 41% of young adults between 24 and 35 still need to leverage employer-sponsored retirement plans fully.
The #RetireInequality campaign began in 2022, on the 50th anniversary of Title IX legislation and during Women's History Month. According to the Center for American Progress (CAP), women typically earn 83 cents for every dollar men earn, resulting in a median annual wage difference of $10,435. Throughout a career, this disparity can lead to a total wage loss of $417,400 for a full-time working woman. Investing 20% of these lost earnings with a 6% annual return could yield an additional $323,000 for retirement savings. Investing the lost wages could increase retirement savings by as much as $1.6 million.
The song features a collaboration with hip-hop luminaries Wyclef Jean, Pusha T, Lola Brooke, Capella Grey, and Flau'jae. "This song is a new form of financial information," remarked one of the artists, underscoring the track's purpose to educate and inspire action on retirement planning and wealth building.
The initiative extends its impact through a partnership with First Generation Investors, a nonprofit organization committed to teaching students about investing. Each song stream translates into donations for the organization, encouraging listeners to play, share, and replay the track to support the cause.
"First Generation Investors is an organization dedicated to providing underserved high school students with the financial knowledge and tools needed to take control of their financial futures," said Stephanie Pressley, Executive Director of FGI.
First Generation Investors offers an 8-week course that covers a range of investment topics, including compound interest, diversification, stocks, bonds, mutual funds, ETFs, and essential personal finance subjects like budgeting and credit. The program emphasizes the importance of delayed gratification, a crucial skill for anyone looking to build long-term wealth.
"The 'Paper Right' track is just one piece of our commitment to close the retirement gap and reach younger people," said Mirza.
For more information on how "Paper Right" contributes to the fight against retirement inequality, visit https://retireinequality.com/.
