Realities of Latinos Saving for Retirement in America

Did you know that Latino workers are more likely than other ethnic groups to rely heavily on Social Security for their retirement income? It’s true —  Latinos also are far less likely to be covered by employer-provided pensions or to be contributing to employer based retirement savings plans. And, with limited individual assets, Latinos remain more vulnerable than other groups to low income and poverty.

La Tercera Edad: Latinos’ Pensions, Retirement, and Impact on Families

The National Endowment for Financial Education® (NEFE®) and its grant to the University of Notre Dame, looks into the multiple causes and effects of Latinos’ lack of preparedness for retirement. 

In addition to analyzing data from two nationally recognized surveys, the Notre Dame researchers held several focus groups with 31 Latinos who are either taking care of their retired parents or are retired themselves. The participants told the NEFE grantees:

“If you have good work, then you are able to save. But for people like us, the pay was insufficient even to pay the rent. There isn’t a way to save for retirement. You have all of these bills to pay."
– Retired participant

“ Good work leads to good pay which leads to good retirement.”
– Senior citizen

“ Mommy, I love you, I adore you, but I’m not going to do for you what you are doing for Grandmother.”
– Daughter saying to her mother who is taking care of her mother

“ Our parents thought of us as their retirement. We are all here [in the United States]. We send money home. It is the custom. We’re accustomed to it. But we see there is another custom here.”
– Woman helping take care of her parents

Read the entire report here.