Older Hispanics Rely on Social Security as Primary Source of Retirement Income

AARP Report Finds That Without Social Security More Than Half of Older

Hispanics Would Live In Poverty

    WASHINGTON, Sept. 19 /PRNewswire-USNewswire/ -- More than half of all
 older Hispanic Americans would live below the poverty line without Social
 Security, according to a new report by AARP.
     (Logo: http://www.newscom.com/cgi-bin/prnh/20070209/NYF043LOGO )
     The AARP report analyzed the sources of retirement income for Hispanics
 age 65 and over, who are twice as likely to live in poverty as all
 Americans in that age group.
     With traditional defined benefit pensions on the decline, and half of
 the working American population without access to any retirement savings
 mechanism, Social Security is the only source of income for many older
 Hispanics.
     "Nearly 75 million working Americans do not have a way to save or plan
 for their retirement," says Gabriela Zabalua-Goddard, editor of AARP
 Segunda Juventud magazine. "While we, as a country, have made great
 progress over the last several decades to increase the financial well being
 of older people, we must do more to increase the financial security of all
 Americans as we get older. We must develop new solutions that increase
 financial literacy and opportunities to save, including automating 401(k)
 accounts and instituting Auto IRA accounts."
     It was found that Social Security provides benefits to almost 75
 percent of older Hispanics and represents the largest single source of
 retirement income for this population group. Social Security payments
 comprise at least half the income of almost 80 percent of Hispanics age 65
 and older who receives them.
     "These statistics are unacceptable -- we must encourage saving for
 retirement in addition to the Social Security benefits Hispanics clearly
 rely on," says Goddard.
     Auto IRA legislation has been introduced in the Senate by Senators Jeff
 Bingaman (D-NM) and Gordon Smith (R-OR). Companion legislation has been
 introduced in the House by Representatives Richard Neal (D-MA) and Phil
 English (R-PA).
     The bill, focusing on employers with more than 10 employees and that
 have been in business for at least two years but do not offer a retirement
 plan for their employees, would facilitate direct-deposit payroll
 deductions to an IRA at a financial institution. The employer would not
 have to contribute to such an account, nor would they hold any liability
 for investment decisions.
     For more information about how to save for retirement, apply for public
 benefits, or this AARP Public Policy Institute report, please visit
 http://www.aarp.org.
     AARP
     AARP is a nonprofit, nonpartisan membership organization that helps
 people 50+ have independence, choice and control in ways that are
 beneficial and affordable to them and society as a whole. AARP does not
 endorse candidates for public office or make contributions to either
 political campaigns or candidates. We produce AARP The Magazine, published
 bimonthly; AARP Bulletin, our monthly newspaper; AARP Segunda Juventud, our
 bimonthly magazine in Spanish and English; NRTA Live & Learn, our quarterly
 newsletter for 50 + educators; and our website, http://www.aarp.org. AARP
 Foundation is an affiliated charity that provides security, protection, and
 empowerment to older persons in need with support from thousands of
 volunteers, donors, and sponsors. We have staffed offices in all 50 states,
 the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.
 
 

SOURCE AARP