Older Latinos have distinct demographic and economic characteristics that are making their reliance on Social Security critical. Latinos are the fastest growing segment of the older adult population. They have lower than average educational levels and higher rates of poverty than other subgroups. In addition, they have small accumulated wealth and limited retirement income. Social Security is a particularly important source of income for older Latinos because it provides many older Latinos with their sole or primary sources of income in retirement. Without Social Security, more than half of older Latinos would live in poverty. This study finds four factors that make Social Security beneficial to older Latinos: (a) lower lifetime incomes, (b) longer life expectancies, (c) higher disability incidence, and (d) higher marriage rates. Because of these factors, older Latinos receive a higher average rate of return on their Social Security contributions. The study also provides policy implications for economic security of older Latinos.
Angel, R.J., & Angel, J.L. ( 1997). Who will care for us? Aging and long-term care in multicultural America. New York: New York University Press.
2.
Angel, R.J., Angel, J.L., Lee, G.Y., & Markides, K.S. (1999). Age at migration and family dependency among older Mexican immigrants: Recent evidence from the MexicanAmerican EPESE. The Gerontologist, 39, 59-65.
3.
Beedon, L., & Wu, K.B. ( 2004). Hispanics 65 and Older: Sources of retirement income . Washington, DC: AARP Public Policy Institute.
4.
Berkowitz, E. ( 2002). Family benefits in Social Security: A historical commentary . In M. Favreault, F. Sammartino, & C. E. Steuerle (Eds.), Social Security and the family (pp. 19-46). Washington, DC : Urban Institute Press.
5.
Butrica, B.A., & Iams, H.M. ( 2000). Divorced women at retirement: Projections of economic well-being in the near future. Social Security Bulletin, 63(3), 3-12.
6.
Council for Community and Economic Research. ( 2008). 2008 Annual cost of living index. Arlington, VA: ACCRA.
7.
De Los Santos, G., Asgary, N., Nazemzadeh, A., & DeShields, O.W. (2005). The agony and the ecstasy: Current status of Hispanic individuals’ achievement in higher education and earning-With a glimpse to the future. Journal of Hispanic Higher Education, 4, 149-170.
8.
Dinitto, M.D. ( 2003). Social welfare: Politics and public policy (5th ed.). Boston: Allyn & Bacon.
9.
Edwards, K., & Mason, L.M. ( 2003). State policy trends for individual development accounts in the United States, 1993-2003, Social Development Issues , 25(1&2), 118-129.
10.
Employee Benefit Research Institute. (2007 ). Minority Retirement Confidence Survey. Washington, DC: Author.
11.
Fry, R., Kochhar, R., Passel, J., & Suro, R. ( 2005). Hispanics and the Social Security debate. Washington, DC: Pew Hispanic Center.
12.
Government Accountability Office. (2003, April 23). Social Security and minorities: Earnings, disability incidence, and mortality are key factors that influence taxes paid and benefits received (GAO-03-387). Washington, DC: Author .
13.
Grillo-Chope, L. ( 2009). Reducing poverty for Latino seniors: A way to improve Social Security benefits for latinos and other low-wage workers?Washington, DC: National Council of La Raza.
14.
Harrington Meyer, M. ( 1996). Making claims as workers or wives: The distribution of Social Security benefits. American Sociological Review , 61, 449-465.
15.
Harrington Meyer, M., Wolf, D.A., & Himes, C.L. ( 2006). Declining eligibility for Social Security spouse and widow benefits in the United States?Research on Aging , 28, 240-260.
16.
Herd, P., & Kingson, E.R. ( 2005). Reframing social security: Cure worse than the disease . In R. B. Hudson (Ed.), The new politics of old age policy (pp. 183-204). Baltimore: John Hopkins University Press.
17.
Hernandez, B. ( 2007). Employment barriers among Latinos with disabilities . New York: National Institute for People with Disabilities .
18.
Huang, J. ( 2009). IDAs, saving taste, and household wealth. Evidence from the American dream demonstration ( CSD Working Paper No. 09-27). St Louis, MO: Washington University, Center for Social Development .
19.
Hummer, R.A., Benjamins, M.R., & Rogers, R.G. ( 2004). Racial and ethnic disparities in health and mortality among the U.S. elderly population. In R. A. Bulatao & N. B. Anderson (Eds.), Understanding racial and ethnic differences in health in late life: A research agenda (pp. 53-94). Washington, DC: National Academy Press.
20.
Kochhar, R. ( 2004). The wealth of Hispanic households: 1996 to 2002 . Washington, DC: Pew Hispanic Center.
21.
Kochhar, R. ( 2008). Latino workers in the ongoing recession: 2007 to 2008 . Washington, DC: Pew Hispanic Center .
22.
Liebman, J.B. ( 2002). Redistribution in the Current U.S. Social Security system . In M. Feldstein & J. B. Liebman (Eds.), The distributional effects of Social Security and social security reform (pp. 11-48). Chicago : University of Chicago Press.
23.
Markides, K.S., & Eschbach, K. ( 2005). Aging, migration and mortality: Current status of research on the Hispanic paradox [Special Issue II]. Journals of Gerontology: Series B. 60B, 68-75.
24.
Martin, P.P. ( 2007). Hispanics, Social Security, and supplemental security income. Social Security Bulletin, 67(2), 73-100.
Muhammad, D. ( 2008). Race and extreme inequality: Will Obama’s presidential candidacy signal a change for impoverished African-Americans?Washington, DC: Institute for Policy Studies.
27.
Mutchler, J.E., & Angel, J. ( 2000). Policy development and the older Latino population in the 21st Century. Journal of Aging and Social Policy, 11, 177-188.
28.
National Center for Health Statistics. (2008 ). National vital statistics reports (NVSR), Deaths: Final data for 2005. Hyattsville, MD: Author .
29.
National Committee to Preserve Social Security and Medicare. (2008). Why Social Security is important to Hispanic and Latino Americans. Washington, DC: Author. Retrieved from http://www.ncpssm.org/news/archive/vp_hispanics/
30.
National Committee to Preserve Social Security and Medicare. (2009). Commissions, cuts, and crisis calls: Why balancing the budget on the backs of Social Security and Medicare just won’t work. Washington, DC: Author. Retrieved from http://www.ncpssm.org/news/archive/vp_balance_budget_seniors/
31.
National Council of La Raza. (2005). The Social Security program and reform: A Latino perspective. Washington, DC: Author.
32.
Palloni, A., & Arias, E. ( 2004). Paradox lost: Explaining the Hispanic adult mortality advantage. Demography, 41, 385-415.
33.
Pew Hispanic Center. (2009). Hispanics and the economic downturn: Housing woes and remittance cuts: 2007 . Washington, DC: Author.
34.
Pew Hispanic Center Tabulation of 2000 Census and 2007 American Community Survey. (2009). Statistical portrait of Hispanic in the United States, 2007. Washington, DC : Author. Retrieved from http://pewhispanic.org/factsheets/factsheet.php?FactsheetID=46
35.
Rivas-Drake, D. ( 2008). Perceived opportunity, ethnic identity, and achievement motivation among Latinos at a selective public university. Journal of Latinos and Education, 7(2), 113-128.
36.
Rodriguez, E., & Tucker, K. ( 2004). How Social Security benefits the Latino community . Washington, DC: Center for American Progress.
37.
Rogne, L., Estes, C.L., Grossman, B.R., Hollister, B.A., & Solway, E.( 2009). Social insurance and social justice: Social Security, Medicare, and the campaign against entitlements. New York : Springer.
38.
Social Security Administration . (2002). Annual statistical supplement, Social Security Bulletin. Washington, DC: U.S. Department of Health and Human Services.
Social Security Administration . (2004b). Social Security is important to Hispanics. Baltimore: SSA Press Office. Retrieved from http://www.ssa.gov/pressoffice/factsheets/hispanics-alt.pdf
41.
Social Security Administration . (2006). Fact sheet: Social Security is important to Hispanics. Baltimore: Author.
42.
Social Security Administration . (2007). Fact sheet: Social Security is important to young people. Baltimore: SSA Press Office. Retrieved from http://www.ssa.gov/pressoffice/factsheets/young-alt.pdf
43.
Torres-Gil, F.M. ( 2005). Aging and public policy in ethnically diverse societies . In M. L. Johnson, (Ed.), The Cambridge handbook of age and aging (pp. 670-681). New York: Cambridge Press.
44.
Torres-Gil, F.M., & Bikson, K.M. ( 2001). Multiculturalism, social policy and the new aging . Journal of Gerontological Social Work, 36(3), 13-32.
45.
Torres-Gil, F.M., Greenstein, R., & Kamin, D. ( 2005a). The importance of Social Security to the Hispanic community . Washington, DC: Center on Budget and Policy Priorities.
46.
Torres-Gil, F.M., Greenstein, R., & Kamin, D. ( 2005b). Hispanics and Social Security: The implications of reform proposals. Washington, DC: Center on Budget and Policy Priorities.
47.
Torres-Gil, F.M., Greenstein, R., & Kamin, D. ( 2005c). Hispanics’ large stake in the Social Security debate. Washington, DC: Center on Budget and Policy Priorities.
48.
Treyz, D., & Leighton, M. ( 2001). High-net-worth families. Trusts and Estates , 140(7), 17-21.
49.
U.S. Census Bureau. (2000). Census 2000. Profile of general demographic characteristics for the United States. Washington, DC: Author. Retrieved from http://www.census.gov/census2000/states/us.html
50.
U.S. Census Bureau. (2007a). Median earning in the past 12 months ( in 2007 inflation adjusted dollars) by sex for the population 16 years and over with earnings in the past 12 months: 2007 (American Community Survey). Washington, DC: Author.
51.
U.S. Census Bureau. (2007b). Number of percentage of people in poverty in the past 12 months by race and hispanic origin: 2007 (American Community Survey). Washington, DC: Author.
52.
U.S. Census Bureau. (2007c, March). Selected population profile in the United States: 2007. (American Community Survey [ACS-08]). Washington, DC: Author.
53.
U.S. Census Bureau. (2008a). Population profile of the United States: 2008. Washington, DC: Author.
54.
U.S. Census Bureau. (2008b). Projected life expectancy at birth by sex, race, and Hispanic origin for the United States: 2010 to 2050 (NP2008-T10): 2008. Washington, DC: Author.
55.
U.S. Census Bureau. (2008c). Projection of the Hispanic population (any race) by age and sex for the United States: 2010 to 2050 (NP2008-T20): 2008. Washington, DC : Author.
56.
U.S. Census Bureau. (2008d). Projection of the Non-Hispanic White alone population by age and sex for the United States: 2010 to 2050 (NP2008-T14): 2008. Washington, DC: Author.
57.
U.S. Census Bureau. (2008e). Age and sex of all people, family members and unrelated individuals iterated by income-to-poverty ratio and race: 2007 (Current Population Survey, Annual Social and Economic Supplement). Washington, DC: Author.
58.
U.S. Census Bureau. (2008f). Source of income in 2007-Number with income and mean income of specified type in 2007 of people 15 years old and over by age, race, and Hispanic origin, and sex (Current Population Survey, Annual Social and Economic Supplement). Washington, DC: Author.
