Older Latinos are using up their Retirement Savings
According to an Associated Press-NORC Center for Public Affairs Research poll, older Latinos (34 percent) are more likely than older whites (24 percent) or older African Americans (25 percent) to say that they’ve had to withdraw or borrow money from a retirement account. The poll found that a third of those that responded that they withdrew money from a retirement account indicated that they used the money to pay monthly bills such as rent and utilities. For example, California residents Jose Victor Camargo, 60, found himself jobless a decade ago and he was forced to cash out a retirement account that he had with his former employer to pay for rent and stay afloat, while he searched for another job. He is currently working in a restaurant earning minimum wage and he is making an effort to save for retirement. However, over half of his income is spent paying for rent and the rest goes to cover basic expenses, which makes it almost impossible for him to plan for retirement. Camargo states,
We are living check to check. I wish I could save more but I don’t have enough.
According to Ernest Gonzales, a sociology professor at Boston University, many Latinos don’t have any savings and job loss or a medical emergency can be devastating. One of the biggest problems that Latinos face is not poor financial planning, it’s pay disparity. According to a 2015 report by the Pew Research Center, Hispanic men earn 69 percent of what white men earn. Only one in three native-born and immigrant Latinos actually have a retirement plan through their employer. Hopefully the pay disparity can be fixed to allow Latinos more of a chance to save for their retirements.
Read the full article here