Poll says blacks less likely to have enough for retirement - WFMJ.com News weather sports for Youngstown-Warren Ohio

Poll says blacks less likely to have enough for retirement

Posted: Updated:
  • NationalMore>>

  • Video of Brown arrest sparks criticism of Milwaukee police

    Video of Brown arrest sparks criticism of Milwaukee police

    Thursday, May 24 2018 5:32 AM EDT2018-05-24 09:32:38 GMT
    (Milwaukee Police Department via AP). This Jan. 26, 2018 police body-camera footage released by Milwaukee Police Department shows NBA Bucks guard Sterling Brown as he talks to arresting police officers after being shot by a stun gun in a Walgreens park...(Milwaukee Police Department via AP). This Jan. 26, 2018 police body-camera footage released by Milwaukee Police Department shows NBA Bucks guard Sterling Brown as he talks to arresting police officers after being shot by a stun gun in a Walgreens park...
    Community groups in Milwaukee are criticizing police over newly released body-camera footage of Bucks player Sterling Brown's January arrest.More >>
    Community groups in Milwaukee are criticizing police over newly released body-camera footage of Bucks player Sterling Brown's January arrest.More >>
  • Las Vegas strike would have far-reaching effect

    Las Vegas strike would have far-reaching effect

    Thursday, May 24 2018 5:32 AM EDT2018-05-24 09:32:16 GMT
    (AP Photo/Isaac Brekken). Culinary Union members file into a university arena to vote on whether to authorize a strike Tuesday, May 22, 2018, in Las Vegas.  A potential strike would affect 34 casino-hotels. A majority yes vote would not immediately aff...(AP Photo/Isaac Brekken). Culinary Union members file into a university arena to vote on whether to authorize a strike Tuesday, May 22, 2018, in Las Vegas. A potential strike would affect 34 casino-hotels. A majority yes vote would not immediately aff...
    Tens of thousands of casino employees could walk off the job for the first time in more than three decades after union members voted to authorize a strike at any time starting June 1.More >>
    Tens of thousands of casino employees could walk off the job for the first time in more than three decades after union members voted to authorize a strike at any time starting June 1.More >>
  • FDA warns teething medicines unsafe, wants them off shelves

    FDA warns teething medicines unsafe, wants them off shelves

    Thursday, May 24 2018 5:14 AM EDT2018-05-24 09:14:54 GMT
    The US Food and Drug Administration health is warning parents about the risks of teething remedies.More >>
    The US Food and Drug Administration health is warning parents about the risks of teething remedies.More >>

By MARIA INES ZAMUDIO
For The Associated Press

CHICAGO (AP) - Older white Americans are nearly twice as likely as African-Americans to say they've saved enough for retirement, a new poll found.

The Associated Press-NORC Center for Public Affairs Research survey also found that African- Americans and Latinos have less financial security than whites and will rely on fewer sources of income during retirement. The retirement savings gap between white and other minority groups extends beyond pensions, 401(k)s or other retirement accounts.

The survey shows older white Americans are also more likely to collect Social Security benefits, inherit money from their families or receive income from the sale of a home or other physical assets.

The disparity in retirement readiness is a sign that the structural inequalities black and Latino workers face during their working years extend into retirement. For example, the unemployment rate among African-Americans is twice that of whites. On top of that, blacks earn less than whites with similar education and experience, research shows.

"Having good saving habits is good but black and Latino workers are just always worse off and it makes every aspect of saving for retirement harder," said Matthew Rutledge, an economist at the Center for Retirement Research at Boston College.

About 38 percent of older white Americans said they had sufficient money for retirement compared with 20 percent for African-Americans.

Four in 10 older Americans say they think they'll outlive their retirement savings.

"Black and Latino families benefit from being close," Rutledge said, adding that family members help to care for children and the elderly. "But it doesn't pay off when compared to whites family's (financial) contributions."

Families not only pass down money, but also information on how to handle finances.

"They have learned better savings behavior from the previous generation," he said. "Older Americans who received financial help from family are less likely to have racked up credit card debt or student loans. They can save (for retirement) rather than paying off debt."

The poll showed whites are significantly more likely, compared to African-Americans and Latinos to say they have a retirement account. They're also more likely than African-Americans to say they will have income from the sale of physical assets.

But even when it comes to the most basic form of income during retirement, whites are more likely to say they will receive Social Security payments - 82 percent compared to 62 percent for African-Americans and 60 percent for Latinos, the survey found.

The situation is so dire that some older African-Americans and Latinos have no sources of income for retirement -14 percent compared to 4 percent of whites, the survey found.

Maria Villanueva, 69, is one of them. Villanueva doesn't collect Social Security payments because she didn't pay into the system. Villanueva immigrated illegally to California in the 70s to work as a farmworker and became a legal resident after the Immigration Reform and Control Act was signed into law. The single mother worked as a domestic worker but was paid in cash.

"I didn't know I had to pay into Social Security," she said in Spanish. "All my life I've taken care of everyone except myself."

Villanueva hoped she would be able to work into older age but she can't because of various chronic illnesses including diabetes and arthritis. She now relies on government assistance and food stamps. She provides for her 15-year-old granddaughter.

"I try not to think about the future because I don't know what's going to happen tomorrow," she said. "What if I go to sleep tonight and I don't wake up tomorrow?"

Retired members of minority groups tend to have lower incomes and are more likely to describe their financial situation as "somewhat poor or very poor" compared to white Americans. Black Americans were also more likely to say they sometimes fall behind on bills, the poll found.

John Jackson, 66, of Fort Lauderdale, Florida, contributed to an Individual Retirement Account when he worked as a manager. Now, two years into retirement, he said he's not sure if his savings and Social Security will be enough.

Jackson, who is black, says there are many people worse off than him and that's why he doesn't like to complain. Worst case scenario, he said, he has a big loving family who could take care of him.

"I know God will take care of me," he said.

Some white Americans also are fearful about having enough for retirement. For example, Karen Brooks, a 52-year-old university professor living in a suburb outside Seattle, said she's concerned whether she's saved enough.

Brooks is, by most standards, better off financially than Jackson. She has a pension from her work as a school teacher. She is also contributing about 15 percent of her current income to a retirement account and she may even receive a small inheritance. But her biggest source of worry is that she didn't save when she went back to graduate school.

"I'm pretty smart and I've done well," she said. "I'm saving for retirement but I don't know if it's going to be enough. It's frightening even talking about it now."

The survey was conducted Feb. 14 through March 13 by The Associated Press-NORC Center for Public Affairs Research with funding from the Alfred P. Sloan Foundation.

It involved interviews in English and Spanish with 1,683 people aged 50 and older nationwide who are members of NORC's probability-based AmeriSpeak panel, which is designed to be representative of the U.S. population. It includes oversamples of 332 African Americans and 308 Hispanics. Results from the full survey have a margin of sampling error of plus or minus 3.0 percentage points.

___

EDITOR'S NOTE - Maria Ines Zamudio is studying aging and workforce issues as part of a 10-month fellowship at The Associated Press-NORC Center for Public Affairs Research, which joins NORC's independent research and AP journalism. The fellowship is funded by the Alfred P. Sloan Foundation.

___

Online:

AP-NORC: http://www.apnorc.org/

Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • More From wfmj.comHot ClicksMore>>

  • What is lava haze? A look at Hawaii's latest volcanic hazard

    What is lava haze? A look at Hawaii's latest volcanic hazard

    Tuesday, May 22 2018 3:45 PM EDT2018-05-22 19:45:48 GMT
    (U.S. Geological Survey via AP). In this image provided by the U.S. Geological Survey, lava from fissure 20 enters the ocean near Pahoa, Hawaii on Sunday, May 20, 2018. The volcano that is oozing, spewing and exploding on Hawaii's Big Island has gotten...(U.S. Geological Survey via AP). In this image provided by the U.S. Geological Survey, lava from fissure 20 enters the ocean near Pahoa, Hawaii on Sunday, May 20, 2018. The volcano that is oozing, spewing and exploding on Hawaii's Big Island has gotten...
    White plumes of acid and extremely fine shards of glass are billowing into the sky over Hawaii as molten rock from Kilauea volcano pours down a hillside and into the ocean.More >>
    White plumes of acid and extremely fine shards of glass are billowing into the sky over Hawaii as molten rock from Kilauea volcano pours down a hillside and into the ocean.More >>
  • School shooting victims killed attempting to ward off gunman

    School shooting victims killed attempting to ward off gunman

    Tuesday, May 22 2018 2:57 PM EDT2018-05-22 18:57:28 GMT
    (AP Photo/Fareed Khan). Abdul Aziz Sheikh, center, father of Sabika Sheikh, a victim of a shooting at a Texas high school, shows a picture of his daughter in Karachi, Pakistan, Saturday, May 19, 2018. The Pakistani foreign exchange student is among tho...(AP Photo/Fareed Khan). Abdul Aziz Sheikh, center, father of Sabika Sheikh, a victim of a shooting at a Texas high school, shows a picture of his daughter in Karachi, Pakistan, Saturday, May 19, 2018. The Pakistani foreign exchange student is among tho...
    An outgoing and 'really funny' student who blocked the door to try to prevent the gunman from entering the classroom and an exchange student who aspired to work in civil service were among the 10 people killed at a...More >>
    An outgoing and 'really funny' student who blocked the door to try to prevent the gunman from entering the classroom and an exchange student who aspired to work in civil service were among the 10 people killed at a Texas high school.More >>
  • Miss Nebraska wins Miss USA competition

    Miss Nebraska wins Miss USA competition

    Tuesday, May 22 2018 4:13 AM EDT2018-05-22 08:13:46 GMT
    The show has begun to see who will go home with the Miss USA title.More >>
    The show has begun to see who will go home with the Miss USA title.More >>
Powered by Frankly
All content © Copyright 2000 - 2018 WFMJ. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms