Retirement Security

Overview
Retirement security is important because the strength of a worker’s retirement wealth portfolio dictates his/her economic well-being, and that of the workers’ family during retirement years. Because of demographic changes, the retirement security of Hispanic workers is critical not only to Hispanic families who may have to support older retiring family members, but also to the larger American community who will depend increasingly on the savings, investment, and hard work of Latino workers to fuel the economy and pay for public services. While the issue of having a comfortable and secure retirement is a concern to all workers, it is especially challenging to Hispanic workers since they tend to be concentrated in low-wage jobs and not have much disposable income to put aside. Although today’s retirees live on Social Security, private pensions, and savings and investment income, Latino retirees typically rely on Social Security as a main source of income.

NCLR Position
Given the importance of retirement wealth to the economic well-being of Hispanic families and the nation as a whole, it is crucial that policy-makers take steps to enhance the overall retirement system to be more responsive to the employment profile of Hispanic workers. Specifically, NCLR believes that the experience of Latino workers must be included in discussions to reform the Social Security system, increase private pension coverage and participation in pension plans by Latinos, and enhance national retirement savings and investment tools such as Individual Retirement Accounts and the Saver’s Tax Credit.