Many Americans are unprepared for retirement, with women, Blacks, and Hispanics at a greater risk of being poor in retirement, according to a report released by the House and Senate Joint Economic Committee (JEC) Democrats’ staff.
“Americans find it increasingly hard to save for retirement amid stagnant wages and the rising cost of housing, healthcare, and college,” Rep. Carolyn Maloney, D-N.Y., the committee’s vice chair, said in unveiling the study.
The report says half of American households are at risk of being unable to maintain their standard of living in retirement, even those who work until 65, reverse-mortgage their homes, or annuitize their financial assets.
“Worse, 40% of workers ages 50-60 who are not currently poor would be poor if were they retire at age 62,” the report said. “Women, Blacks, and Hispanics are at substantially greater risk of being poor in retirement.”
For Blacks and Hispanics, the retirement security gap is likely to worsen because of personal savings and lower earnings.
“The median wealth of Black and Hispanic households is on a steady decline; trends suggest that median wealth could reach zero by 2053 for Black households, and by 2073 for Hispanic households, while median White household wealth will have reached $147,000 by 2073,” the report points out.