New Study Reveals Significant Challenges Hispanic Americans Face in Preparing for Retirement

New Study Reveals Significant Challenges Hispanic Americans Face in Preparing
for Retirement

TO DOWNLOAD A COPY OF THIS REPORT, GO TO:
http://www.paycheckforlife.org/uploads/white-paper-hispanics-and-retirement-english.pdf

WASHINGTON, Oct. 8 /PRNewswire-USNewswire/ -- A new report released today
demonstrates that Hispanic Americans face greater challenges in obtaining a
secure retirement than the average population. The paper, prepared by the
Hispanic Institute think-tank and the Americans for Secure Retirement (ASR)
coalition, finds that the unique challenges include a general lack of
retirement preparation, less access to employer-sponsored retirement plans,
lower levels of personal savings and inadequate financial literacy.

The report concludes that Hispanic Americans need to consider multiple
retirement vehicles to supplement Social Security and to bridge the gap in
access to employer plans. Options such as lifetime annuities can minimize
financial risks and provide the means to both build retirement savings and
secure guaranteed income that will last as long as they live. Access to such a
source of guaranteed lifetime income to supplement Social Security is a
critical part of planning for a secure retirement.

"While our research found that Hispanics face greater challenges in preparing
for retirement than the average population, with the right tools to properly
prepare for retirement, these obstacles can be overcome," said Gus West, Board
of Directors Chair for Hispanic Institute.

Significant findings of the study include:

-- Only 41 percent of Hispanic workers say they have saved money for
retirement.
-- Only 25.6 percent of Hispanics are covered by employer-sponsored
retirement plans, compared to 42.5 percent of whites and 40 percent of
African-Americans.
-- Of the Hispanics receiving Social Security benefits, almost 80 percent
rely on these benefits for at least 50 percent of their retirement
earnings.

-- Among people 65 and older receiving Social Security, on average
Hispanics receive about $2,124 less in earnings than non-Hispanics.

Between 1979 and 1999, middle-class Hispanics households increased nearly 80
percent. In the same period, the group of Hispanic households earnings between
$40,000 to $140,000 grew to include about one-third of the total Hispanic
households nationwide.

Today, the U.S. Hispanic population makes up about 48 million people; by 2050
that number will increase to 132 million, accounting for nearly 30 percent of
the total U.S. population. Due to the growing Hispanic population, an average
longer life expectancy, and because only 16 percent of the population is in
their pre-retirement years, Hispanics will make up a significant number of
those entering retirement in the future.

"Since two-thirds of Hispanics are employed in the service-related field,
which generally does not offer employer-sponsored retirement plans, many hard
working Hispanic Americans may not have the proper nest egg to retire. It is
imperative that their savings are managed and invested in a secure plan that
assures income for life," said Brent Wilkes, Executive Director of League of
United Latin American Citizens.

Legislation currently being considered in Congress would create tax advantages
for the purchase of an annuity and the conversion of a portion of an
individual's savings into a lifetime retirement income stream. The Retirement
Security Needs Lifetime Pay Act, H.R. 2748, in the U.S. House and the
Retirement Security for Life Act, S. 1297, in the U.S. Senate, would create a
tax exclude from taxes a portion of the annual income received through an
annuity, increasing accessibility to lifetime annuities as a retirement option
and creating significant tax savings for middle-income Americans.

"Congress needs to pass this legislation to encourage the greatest
accessibility possibility to multiple retirement savings vehicles that tackle
the income side of the retirement problem," said Bill Waldie, Chairman of ASR.

The Hispanic Institute nonprofit organization formed in 2005 to provide an
effective education forum for an informed and empowered Hispanic America.
Americans for Secure Retirement is a broad-based coalition of more than 50
organizations who are united in their commitment to raise awareness of the
retirement challenge facing all Americans.

To view the complete Hispanic and Retirement: Challenges and Opportunities
report, please visit www.paycheckforlife.org.

SOURCE Americans for Secure Retirement

Ana Williams, +1-202-777-3518, awilliams@clsdc.com, or Elliott Bundy.
+1-202-777-3562, ebundy@clsdc.com, both for Americans for Secure Retirement