Hispanic Americans Ill-prepared for Retirement

Hispanic Americans, the fastest-growing segment of the U.S. population at or near retirement, are among the least prepared to live off their savings, according to a recent report by the Retirement Security Project and the National Council of La Raza. Forty-three percent of Latino workers say they know nothing about investing and saving for retirement, compared with 12 percent of all workers, according to the study.

The study also found that while half of the heads of U.S. households nearing retirement have $10,000 or less in a 401(k) or individual retirement account, more than half of the heads of Hispanic households ages of 55 to 59 have nothing in these retirement vehicles. The study also found that the median balance held in IRAs and 401(k) plans is $600 for U.S. households but is zero among Hispanic Americans.

The need for retirement savings education and help is particularly acute with Hispanics, given that they have a longer life expectancy than other Americans, according to the report. At age 65, for example, the life expectancy for Hispanic Americans is 21 years, compared with 17 years for black non-Hispanics and 18 years for white non-Hispanics.

—Jessica Marquez

Assets Held in 401(k)s and IRAs
Income class*
All households
Hispanic households
Average
Median
Average
Median
Less than $10,000 $2,572 $0 $159 $0
$10,000-$20,000 4,200 0 2,331 0
$20,000-$30,000 10,763 0 1,383 0
$30,000-$40,000 23,252 200 6,896 0
$40,000-$50,000 24,909 2,000 15,404 0
$50,000-$75,000 50,868 15,700 12,136 900
$75,000-$100,000 73,638 28,500 34,655 7,000
$100,000-$200,000 160,626 62,000 61,293 58,000
Overall 53,670 600 10,480 0
*Dollar amounts reflect dollar value from the year 2000.
Source: The Retirement Security Project, “Retirement Security for Latinos: Bolstering Coverage, Savings and Adequacy.”