Compared with many other workers, they are behind the curve in saving for retirement.
“Only 26 percent of Hispanic families had a retirement savings account (compared with 65 percent of white, non-Hispanic families) and those that did had a median of $22,000 saved (compared with $73,000 for whites),” say researchers at the Economic Policy Institute. Even worse, the gap only appears to be widening.
Only about one in three Hispanic workers has access to a retirement plan through work, says the Center for Retirement Research at Boston College.
That’s a particular problem because Hispanics tend to live longer than their white, non-Hispanic counterparts. And of course, the longer you live, the more money you need in retirement to support yourself.
Here’s some tips Hispanic workers and their families can use to address the saving gap:
- Seek to work at a company that sponsors a workplace retirement plan and contributes on behalf of workers.
- Enroll in the plan promptly and contribute at least enough to capture the full employer match.
- No plan at work? You’ll need extra discipline and a well-designed plan to save on your own, but it’s very do-able.
- Pick an asset allocation appropriate to your time horizon and goals. For retirement accounts, this might mean a more growth-oriented account with a mix of stocks for growth and bonds for income and stability.
- Make smart decisions about when to claim Social Security. Certain claiming strategies can maximize lifetime benefits and make your money last longer.
- Be cautious about providing support to grown children and younger family members. They have years ahead of them to work and save for retirement, while for you, time may be limited. Impoverishing yourself to support grown kids is rarely a wise strategy.
About one-fourth of Floridians are of Hispanic or Latino origin. That percentage increases to over 65% in Miami-Dade county. Hispanic residents made up almost half of Florida’s population growth in recent years, according to U.S. Census Bureau figures.