Editorial: Latinos and Retirement
More savings are needed, as well as changes to the Social Security
The perspective of a tranquil requirement seems difficult for most Latinos. As low incomes make it difficult to save money, most political proposals for the Social Security program are based on cutting benefits and/or extend the retirement age, for example from 67 to 70 years of age.
A recent study by the progressive Center for Economic and Policy Research pointed out that raising the retirement age affects Latinos disproportionately because their lack of qualification leads them to physically demanding jobs. In 2014, 60.7% of Latinos older than 57 worked in places that required some physical activity. Our community has the largest percentage of people in that category, which often means that people goes to retirement physically weakened after decades of hard work.
Furthermore, nobody talks about what kinds of jobs will be available for people older than 67 to keep a decent living.
It’s very easy for a politician sitting on their desk to think about extending the working years of a farmer who works his heart out every day. The same goes with cutting Social Security benefits that people depend on exclusively, as millions of Americans will retire practically without savings. All that in the name of saving the system.
Those proposals are nothing but a farce.
When Americans are asked to choose between all options available, they prefer to raise gradually the current worker and employer contribution from 6.2% to 7.2%. Also, to eliminate the current contribution cap, so those who earn $118,500 per year don’t pay the same as a millionaire. Those measures would protect and expand Social Security so retirees with 30 years of work don’t have to live under the poverty level.
An alternative to the lack of savings for small-business workers is being managed in several states from California to New York and Illinois. There, they are trying to offer those employees IRA plans that would allow them to have an additional source of income. Those plans are not advancing as fast as they should because there are too many interests involved. But their mere existence give us hope that retirement will bring Latinos golden years instead of poverty.
