Hispanic do retire, but
how? (Part I)
| NCLR |
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| Janet Murguia, NCLR President and CEO |
Alex A. Ormaza
06/17/2005
A new report urges Congress and the Bush Administration to strengthen
the solvency and reach of the Social Security program for Latinos
and consider other options to boost retirement for this growing population.
The report was released by the National Council of La Raza (NCLR),
a Hispanic advocacy organization, and presents a comprehensive analysis
of the Social Security program as it relates to Latino workers, taxpayers,
and retirees.
"Maintaining solvency of the system is
especially important for the Hispanic community," stated Janet
Murguia, NCLR President and CEO. "Without Social Security, the
poverty rate of eligible elderly Hispanics would more than triple,
from 16% to 55%.”
Murguia also emphasized the contributions made by Latino workers to
the Social Security system. The Census Bureau estimates that Latino
workers contribute some $50 billion, without this money, the safety
net created to alleviate poverty would not be strong enough to support
beneficiaries.
The report, titled The Social Security Program and Reform: A Latino
Perspective, recommends other options that should be included in a
discussion of social security such as add-on private retirement accounts,
automatic 401(k)s, and making the saver's tax credit permanent and
refundable.
"As workers and as beneficiaries, Latinos
have a profound stake in the debate over Social Security. It is critical
to ensure that it is the social insurance program it was intended
to be," continued Janet Murguia.
The vast majority of Hispanic workers in the U.S. - 19.4 million-
pay into the Social Security system. When compared with White and
Black peers in many categories, Latinos are the least likely to receive
Social Security benefits.
Some of the reasons are that Hispanics have a shorter stories of contribution,
earned lower wages, work in informal sectors of the labor market or
in occupations such as domestics and childcare workers, where Social
Security rules may prevent them from earning quarterly credits that
help them qualify for retirement benefits.
"We need
to make sure that all workers who pay into the system receive decent
benefits when they retire. We must ensure that the Social Security
program is fiscally sound so that young people today have guaranteed
benefits years from now. And, we should do more, outside of Social
Security, to encourage individual savings for retirement security
for Latinos and all Americans," said Murguia.
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