Minorities and Retirement
Security (MRS)
Dr. Hervani (PI)
Saeid Delnavaz (RA)
Third Seminar
April 25, 2014
Chicago State University
The Goal For April

Integrate everything that you have done
together and write a broad research paper
that focuses on the overall analysis of your
literature review and finding (based on the
32 articles that you have reviewed).
My Equation is as fellow:

RS= f (Gender, Race, Education, Marital Status,
Household Income)

RS= Dependent Variable

Gender, Race, Education, Marital Status and
Household income= Independent Variable
Gender

Studies showed that females experience retirement differently from
males. They found that males were likely to have a more positive
attitude toward retirement than females. In contrast, female workers
were found to be less prepared for retirement than their male
counterparts and the 2000 Women’s Retirement Confidence Survey
also showed that women had lower confidence and retirement
preparation than males. (Kim, Kwon and Anderson)

“Women feel much more vulnerable about their economic security than men:
29 percent of women are worried, while only 19 percent of men are. (Lovell,
Hartmann and Williams)”

Most important items that effect on retirement insecurity for women:
1)
Occupational Segregation
2)
Pay Inequality
3)
Lifetime Work Experience

Lower earnings and fewer years in the work force translate into less
retirement income because pensions and Social Security typically reward those
with higher pay and more years of paid work.

Because of the demands of
1.
child-birth
2.
child-rearing
3.
adult care
Women still tend to experience shorter and more interrupted careers
than men do, and are more likely to work either part-time or in low-paying
occupations.( Papke, Walker, and Dworsky 2008)
Percentage worried about
Their economic security
Not having enough money to retire on
Social Security being reduced or eliminated
Not saving enough for retirement
Women
Men
29%
19%
35%
24%
56%
41%
63%
51%
Race

Minority workers such as African-American and Hispanic workers, have been
reported to have lower retirement confidence and less retirement
preparation primarily due to lower income (Kim, Kwon and Anderson)

Less than half of African-American (48 percent) and Hispanic (41 percent)
workers have saved money for retirement.

More than half of African-Americans (54 percent) and Hispanics (55 percent)
report having less than $10,000 in savings and investments.

one-quarter of African-Americans (27 percent) and Hispanics (23 percent)
have tried to calculate how much they need to save for a comfortable
retirement.

Both African-Americans (41 percent) and Hispanics (38 percent) are also
more likely than workers in general (25 percent) to think Social Security
will be a major source of income.

More than half of African-Americans (53 percent), compared with 4 in 10
of all workers (41 percent) expect to have access to retiree health
insurance through an employer.

A larger share of African- Americans (34 percent) than workers overall (24
percent) and Hispanics (18 percent) also think they have private coverage
for long-term care expenses. (Helman and Greenwald 2007)

The report finds that while every racial group faces significant risks,
people of color face particularly severe challenges in preparing for
retirement. Specific findings are:
1. Workers of color, in particular Latinos, are significantly less likely
than white workers to be covered by an employer-sponsored
retirement plan.
2. Households of color are far less likely to have dedicated retirement
savings than white households of the same age.
3. Households of color have substantially lower retirement savings than
white households, even after controlling for age and income. (Rhee
2013)
Race
White
African-
Hispanic
American
Worried about their economic security: Men and
22%
30%
31%
27%
31%
38%
Women
Worried about their economic security:Women
Education

Education also affects retirement attitude. Joo and Pauwel (2002)
found that those who had higher levels of education had higher
levels of retirement confidence.

Less than half of women college graduates think they are doing well
in saving enough for retirement (47 percent say they are saving
enough). 71 percent of women who lack a high school degree, 64
percent of women who completed high school but did not attend
college, and 70 percent of women with some college studies think
they should save more. (The comparable numbers for men are 60
percent, 58 percent, and 51 percent, respectively.) But women are
not saving enough because they just can’t.

51 percent of women with less than a high school education, 64 percent
of women with a high school diploma, 56 percent of women with some
college, and 55 percent of college graduates report that they cannot
afford to save more for retirement. (Among men, 42, 52, 51, and 63
percent, respectively, cannot save more.) (Lovell, Hartmann and
Williams)”
Marital Status

Marital status is also linked to attitude toward retirement. Married individuals
were likely to have more positive attitudes toward retirement, while those
who were never married had more negative attitudes toward retirement
(Turner, et al., 1994).

Women with the most comfortable retirement incomes are those who are
married and living with their husbands. In 2004, more than 50 percent of such
women had household incomes of $35,000 or more. By contrast, women with
the lowest incomes are those who are heads of households and live alone.
Fewer than one in ten had incomes of $35,000 or more; well over one-half
(58.5 percent) had incomes under $15,000 (SSA, 2006).

Unfortunately, many older women find that marriage is no
protection against poverty. After counting on their husband’s
benefits to support them in retirement, they often discover that
widowhood or divorce can sharply reduce their income in old age.
Today, nearly 60 percent of older women in America are single.
They are either widowed (42.4 percent), divorced (9.1 percent),
separated (1 percent), or never married (3.6 percent). (Census,
2006A).( Hounsell 2008)
Household Income

Household income is critical in understanding attitude
toward retirement. Feldman (1994) found that those with the
highest incomes (over $75,000) generally had much more
favorable attitudes toward retirement than those with lower
incomes (under $25,000); those in low-income groups view
retirement unfavorably. Additionally, Joo (2002) found that
those with higher income (over $50,000) had more positive
retirement confidence.

The gap between typical incomes for white elders and AfricanAmerican elders is almost $5,000; Asian and Hispanic older
adults report median annual incomes that are more than
$6,000 less than white retirees’ incomes. Racial disparities in
retirement income reflect racial disparities in income during
adults' working-age years. Minority workers are more likely
than their white counterparts to work in occupations that
provide lower pay and are less likely to offer retirement plans.
(Wider Opportunities for Women, 2012)

At retirement, minority adults therefore tend to have less in
retirement savings. At the same time, lifetime earnings and
labor force patterns result in Social Security benefits that are
typically lower for elders of color than for white retirees.
Wider Opportunities for Women, 2012)
Thank You