Report: Minorities depend more on Social Security
November 4th, 2011|
The Washington Post reports that Social Security is a critical safety net for minority Americans. Minorities tend to be poorer and more vulnerable to economic fluctuations than their counterparts.
Minorities are also less likely to have workplace-sponsored pension programs because they are less likely to have employers that offer such benefits. This means that they have fewer assets to draw upon.
Higher rates of poverty, disability, morbidity, and mortality mean that more non-elderly black and Native Americans rely on Social Security survivor and disability benefits than white Americans.
White Americans mostly rely on the Social Security for retirement benefits alone.
Effect from the Economy
The economic crisis has exacerbated the decades-old race gap–or wealth gap–in wealth and income. Though benefits are given out according to a progressive formula, Social Security hasn’t been that effective at redistributing the wealth from rich to poor households.
Minorities are expected to be a majority of the U.S. population by 2042. They will, in effect, become the new “minority majority” population. Simply put, that huge demographic change will affect Social Security because given the disparities in wealth and income, more Americans will rely heavily on Social Security.
How do you think Washington should address this issue?
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