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Many blacks and Latinos have no retirement savings, study shows
Washington Post ^ | December 9, 2013 | Michael A. Fletcher

Posted on 12/10/2013 5:29:43 AM PST by reaganaut1

Fewer than half of blacks and Latino workers have retirement plans on the job, leaving the vast majority of them with no savings designated for their golden years, according to a report to be released Tuesday.

Americans of all races face the growing prospect of downward mobility in retirement, the report said, but the problem is particularly acute for blacks and Hispanics.

More often than not, blacks and Latinos benefit little from the tax breaks and other policy initiatives aimed at bolstering retirement security because they typically have no money to save for retirement in IRAs and other vehicles outside the workplace, according to Diane Oakley, executive director of the National Institute on Retirement Security (NIRS), which conducted the study. In addition, they are much less likely than whites to have defined-benefit pensions, particularly outside of public sector jobs.

“Those are startling findings,” Oakley said. “The typical household of color has nothing saved in a retirement account.”

The report highlights the retirement security problems looming for a nation grappling with serious debt even as an aging population is demanding more services from government.

A broad sweep of policy makers, including the Bowles-Simpson deficit reduction commission and President Obama, have endorsed trimming future Social Security benefit increases as a way of reining in the national debt.

Charles Blahous, research fellow with the Hoover Institution and one of the trustees appointed to oversee Social Security and Medicare, argued that Social Security has the perverse effect of discouraging cash-strapped people from making a priority of retirement savings.

“A true answer to the problem would mean decreasing our society’s dependence on income transfer programs as a source of retirement income, and increasing the net amount of saving that we do,” he said in an e-mail.

(Excerpt) Read more at washingtonpost.com ...


TOPICS: Business/Economy; Culture/Society
KEYWORDS: blacks; hispanics; latinos; retirement; savings
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A stupid argument for mass immigration is that it will bolster our entitlement programs. How does importing people who don't save and are dependent on means-tested programs solve the entitlement problem?

Get ready for 401(k) and IRA tax deductions to be singled out as tax breaks for rich white people.

1 posted on 12/10/2013 5:29:43 AM PST by reaganaut1
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To: reaganaut1

They will be on medicaid to pay their nursing home costs.


2 posted on 12/10/2013 5:31:36 AM PST by sickoflibs (Obama : 'If you like your Doctor you can keep him, PERIOD! Don't believe the GOPs warnings')
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To: reaganaut1

Poor people have poor ways.


3 posted on 12/10/2013 5:36:21 AM PST by E. Pluribus Unum (Who knew that one day professional wrestling would be less fake than professional journalism?)
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To: reaganaut1

Another big problem is that the boomers were a prosperous bunch, but they are being replaced by a much less prosperous generation.

Dishwashers, burger flippers and gardeners are going to have a hard time supporting retiring boomers.


4 posted on 12/10/2013 5:36:22 AM PST by umgud (2A can't survive dem majorities)
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To: reaganaut1

(And in Obama’s economy, many whites have no retirement savings as well...so why paint whites as the exception, oh MSM?)


5 posted on 12/10/2013 5:36:29 AM PST by Colofornian
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To: reaganaut1

It’s hard to win The War On Poverty when the government keeps bringing in millions of reenforcements for the other side.


6 posted on 12/10/2013 5:36:34 AM PST by Iron Munro (Orwell: There are some ideas so absurd that only an intellectual could believe them.)
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To: reaganaut1
The typical household of color has nothing ...
Fill in the blank:    _________ fault!
7 posted on 12/10/2013 5:38:52 AM PST by oh8eleven (RVN '67-'68)
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To: reaganaut1

You mean SNAP and food stamps doesn’t translate into IRAs? I’m shocked, I tell ya, shocked.


8 posted on 12/10/2013 5:40:01 AM PST by yldstrk (My heroes have always been cowboys)
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To: sickoflibs

They usually die before that.


9 posted on 12/10/2013 5:40:53 AM PST by AppyPappy (Obama: What did I not know and when did I not know it?)
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To: yldstrk

Get ready for the push to “socially justice” all IRAs.


10 posted on 12/10/2013 5:41:50 AM PST by Mouton (The insurrection laws perpetuate what we have for a government now.)
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To: reaganaut1

There will be no retirement for the vast majority soon (especially if your ex gets 3/4 of yours in the divorce).
Work till you drop or die early.


11 posted on 12/10/2013 5:42:43 AM PST by CapnJack
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To: E. Pluribus Unum

Yes but they get a check every month. So long as they keep getting that check, someone will give them a bed in their house in exchange for that check.


12 posted on 12/10/2013 5:43:29 AM PST by AppyPappy (Obama: What did I not know and when did I not know it?)
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To: reaganaut1

“Meanwhile, a host of state and local governments have been cutting back on pension benefits for public employees, saying they cannot afford their long-term cost.

Such public employee pensions, which typically pay a fixed benefit for life, have been of particular help to African Americans, who make up a disproportionate share of government workers. Similarly, trimming retirement benefits will disproportionately hurt the retirement prospects of black workers, even as they struggle with lower housing values and homeownership rates than whites.”

So now the unions will argue that bankrupt Detroit cannot trim their pensions because it is racist.


13 posted on 12/10/2013 5:44:14 AM PST by Rusty0604
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To: reaganaut1

They DO have retirement plans; make whitey pay.


14 posted on 12/10/2013 5:45:59 AM PST by Doctor 2Brains
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To: reaganaut1

Some truth would help all involved here. The statement begs three immediate questions. How many work in government, how many work in private employment and how many do not work? Since we know all the govt. workers have class A retirement opportunities lets take them out. Then figure out what the savings rates are of the the cohort with private sector employment. My bet is that folks that work save at the same rate as other folks that work regardless of ethnicity. Which leaves those that do not work. For them, what are they really retiring from ? How could they save at a comparable rate if they don’t work in the first place?


15 posted on 12/10/2013 5:46:37 AM PST by major-pelham
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To: reaganaut1

Why should they save? Whitey will share. He’s been doing it since LBJ days, and now that BHO is in charge of the government and immigration, he’ll have to do it some more.


16 posted on 12/10/2013 5:46:43 AM PST by Pearls Before Swine
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To: sickoflibs

They already are (majority of them, anyways).


17 posted on 12/10/2013 5:47:25 AM PST by Jane Long (While Marxists continue the fundamental transformation of the USA, progressive RINOs assist!)
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To: reaganaut1
Many blacks and Latinos have no retirement savings

Well that makes three of us.
18 posted on 12/10/2013 5:49:09 AM PST by mmichaels1970
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To: reaganaut1

The Cyprus bank takeover by government was just the start. Don’t think the lefties in this country didn’t take notice. They want to go after that pile of money called 401ks so badly. I guarantee before I start drawing on my retirement savings, they will be trying to get their hands on it.


19 posted on 12/10/2013 5:49:37 AM PST by Old Teufel Hunden
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To: reaganaut1

Once upon a time, there was an ant and a grasshopper. The ant worked hard every day storing up food for the winter. The grasshopper played his fiddle and had a good time and did not store up food for the winter. Winter came. The grasshopper went to the government and said, “Give me some of the ant’s food.” The government took food from the ant by threatening to throw the ant into prison if he didn’t give them food for the grasshopper. This went on for several years, and there were more and more grasshoppers playing their fiddles in the summer and eating the ant’s food in the winter. Finally, the ant had no food left for himself and starved to death in the winter. The moral of the story is: Screw the Democrats. Let them eat grasshoppers.


20 posted on 12/10/2013 5:49:56 AM PST by blueunicorn6 ("A crack shot and a good dancer")
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To: reaganaut1

All arguments for immigration are stupid.

To this headline... SO, they can work until they drop like the rest of us. Tough.

My give a damn busted a long time ago.


21 posted on 12/10/2013 5:49:59 AM PST by Sequoyah101
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To: reaganaut1

Why should they save? They already know that those who do will have their savings redistributed to those who don’t.


22 posted on 12/10/2013 5:50:28 AM PST by freeangel ( (free speech is only good until someone else doesn't like it)
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To: All

Obama will pay for it out of his stash


23 posted on 12/10/2013 5:50:30 AM PST by newnhdad (Our new motto: USA, it was fun while it lasted.)
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To: Colofornian
And in Obama’s economy, many whites have no retirement savings as well

Agreed. I guess this is just another thing I'm supposed to feel terrible about.
24 posted on 12/10/2013 5:51:21 AM PST by mmichaels1970
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To: freeangel

That is a good point. As well, many in these groups simply do not comprehend deferred gratification. They do not plan for the future and live solely for today. Every group has some folks like that but some groups are mostly composed of such people.


25 posted on 12/10/2013 5:54:14 AM PST by 17th Miss Regt
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To: freeangel

Exactly. By the time they pay for the Smartphone, the car, the bling, etc...there isn’t any money for savings.

See my sister. She has no savings. My mother left her some money and she spent it on a 5th wheel and a car to pull it. Tomorrow is another day.


26 posted on 12/10/2013 5:54:47 AM PST by AppyPappy (Obama: What did I not know and when did I not know it?)
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To: Doctor 2Brains; reaganaut1
They DO have retirement plans; make whitey pay.

With our 401K's, IRA's and other savings.

Like 0 says....Income Equality™ must be addressed.

You shouldn't be punished with a baby OR for NOT having any savings. Period.

Let those who worked hard make up for your lack of discipline - they didn't build that 401K!

27 posted on 12/10/2013 5:54:48 AM PST by Jane Long (While Marxists continue the fundamental transformation of the USA, progressive RINOs assist!)
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To: Jane Long
Like 0 says....Income Equality™ must be addressed.

Re-distribution of retirement savings will be required to redress past inequities in the distribution of income.

28 posted on 12/10/2013 5:59:51 AM PST by tacticalogic
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To: reaganaut1

It’s so unfair!! We need some more gubmint sponsored plunder!!

Next up, it’s so unfair that Hispanics and blacks don’t own houses. . .


29 posted on 12/10/2013 6:05:24 AM PST by FlipWilson
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To: reaganaut1

I would bet that sometime in my lifetime 401’s and IRA’s will be rolled into some sort of Social Security fund promising to provide benefits to everyone evenly and fairly. That is why I cashed mine out long ago and put it into real estate.


30 posted on 12/10/2013 6:05:49 AM PST by BobinIL
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To: reaganaut1
401(k) and IRA tax deductions to be singled out as tax breaks for rich white people.

If it just stopped there, that would be one thing. It seems likely though that these tax deferred retirement savings will be forcibly converted to a government administered retirement plan. But don't worry, "you'll do as well or better than you would have under your old plan." Wink wink.

And it might not stop there. There is already talk of means testing for eligibility for Medicare and SS. This means testing will take into account net worth which will include property that you own as well as investments that you have. And there may be more. I have also read that a "one time" tax assessment on net worth is being considered. This has already been done in Cypress.

31 posted on 12/10/2013 6:06:28 AM PST by outofstyle (Down All the Days)
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To: Jane Long

This is the beginning of the nationalization of our 401k’s discussion. They have to fire up the class and race warfare machine to get the ball rolling.


32 posted on 12/10/2013 6:06:56 AM PST by bigtoona
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To: reaganaut1

No solutions are proposed by this report, but reading between the lines and with the reference to Sen. Warren, you can assume the following:

Democrats would support:

1. Social Security taxes applied to ALL income - no ceiling.
2. Greater increases in Social Security payments.
3. Repeal of tax benefits for retirement savings accounts.


We’re getting great signals on what liberals are going to run on in 2014. Income inequality. Not only as it applies to working people, but also to those who are retired. They’re dividing us (again) along racial lines because they only way they hope to hold their own next year is to gin up turnout among minorities in states where there are key Senate races. Otherwise, they’re toast.


33 posted on 12/10/2013 6:09:54 AM PST by randita
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To: reaganaut1

Go stand at the entrance to the parking garage where I work and track the race of who’s driving the Acuras, Lexus’s (Lexii?), Mercedes, BMWs, etc. There’s a real trend there.

It would be interesting to compare that with the 401(k) participation rate.


34 posted on 12/10/2013 6:11:17 AM PST by AbnSarge
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To: E. Pluribus Unum

If you normalize for income,
net worth tells the story of the difference in cultures.


35 posted on 12/10/2013 6:12:18 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: reaganaut1

That’s just getting the public ready for the next big wave of government ‘reform’. A massive transfer of money that hard-working people have saved to those who have saved nothing and vote democrat.

You think it isn’t coming?


36 posted on 12/10/2013 6:17:09 AM PST by I want the USA back (Media: completely irresponsible traitors. Complicit in the destruction of our country.)
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To: reaganaut1

Sure they do. It’s the Uncle Sam Checkcome Plan....


37 posted on 12/10/2013 6:21:43 AM PST by Kozak ("Send them back your fierce defiance! Stamp upon the cursed alliance! To arms, to arms in Dixie!)
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To: reaganaut1

Two full generations raised on an instant gratification, drive-thru, on-demand lifestyle can’t be expected to think about the FUTURE, can they? /s

We conducted a 401k survey at work one time, asking our employees how they anticipated funding their retirement. 70% of the under 30 crowd replied with “win the lottery” as opposed to savings or 401k involvement.

Cuz you can’t afford all the latest electronics if you’re saving for the future, you know!


38 posted on 12/10/2013 6:46:11 AM PST by ItsOurTimeNow ("Scheming demons dressed in kingly guise, beating down the multitudes and scoffing at the wise.")
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To: AbnSarge

Most of those vehicles are leased. There is also a scam where people simply default on the lease, the car is repo’d and they then go out and get another lease at a higher interest rate. Rinse and repeat.

The phones are free or bought in a back alley. The bling is plated. The clothing is worn once and returned, bought at closeout, fell off the truck or shoplifted. Maybe the hairdos and nails are retail, but likely there are ways of which I am unaware to achieve that look at a discount.

Caveat: there are successful folks of all races. Some came by their toys honestly. They are not the ones on benefits. If you can afford to own a high-end vehicle, you likely have some sort of savings. Or, you have a pension. $40k/year is the equivalent of a couple of million at today’s interest rates.

If retirement is equalized, will those of us who are white and have lost money in this high tax, low rate environment be made equal as well? Somehow, I doubt it.


39 posted on 12/10/2013 7:00:02 AM PST by reformedliberal
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To: reaganaut1

“Meanwhile, a host of state and local governments have been cutting back on pension benefits for public employees, saying they cannot afford their long-term cost.

Such public employee pensions, which typically pay a fixed benefit for life, have been of particular help to African Americans, who make up a disproportionate share of government workers. Similarly, trimming retirement benefits will disproportionately hurt the retirement prospects of black workers, even as they struggle with lower housing values and homeownership rates than whites.”

This is the first time I’ve ever read anything that truthfully reflects preferential hiring to the extent it has occurred.

Pity the poor private sector taxpayer, burdened with massive costs from exorbitant pensions and heathcare, unable to fund their own retirement, continuing to pay ever higher taxes to fund the government retirees.

On 401Ks:
“But that money, while growing, is not distributed equally, many argue. Most of the money is being saved by higher income Americans, while many working class and low-wage workers are struggling to even earn regular full-time hours at work.”

The mantra continues that the money you earn and save is not your money.

If the democrats win Congress next year, count on new rules for private retirement funds in the name of fairness and equity.

Of course, none of this will apply to our feckless rulers.


40 posted on 12/10/2013 7:07:43 AM PST by OpusatFR
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To: reaganaut1

The fable of the ant and the grasshopper comes to mind.

The number one rule in investing is that more than asset class, diversification, tax loss harvestig, taxable v. non-taxalbe, savings rate is what matters most of all for income earners. If you don’t save, you won’t have a retirement savings.

In retirment, it will be spending rate that will matter most.

Those who don’t save deserve exactly what they have coming to them.


41 posted on 12/10/2013 7:11:01 AM PST by CaspersGh0sts
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To: Mouton
Oh, the social justice push is already hinted at in the article. Here is the money line:

"But that money [the 20-trillion in 401ks and the like], while growing, is not distributed equally, many argue."

Of course it's not. Some saved. Some didn't. My response? So what? It's exactly as it should be.
42 posted on 12/10/2013 7:26:48 AM PST by CaspersGh0sts
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To: reaganaut1

Thats because they spend all their money on bling, low riders, spinner wheels, and on and on. Our money, no less.


43 posted on 12/10/2013 7:51:30 AM PST by Old Yeller
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To: CaspersGh0sts
Those who don’t save deserve exactly what they have coming to them.

And many are already getting what they deserve in losing their jobs, taking pay cuts, and working to keep their homes after the income drop. Yup...screw em all.
44 posted on 12/10/2013 8:05:33 AM PST by mmichaels1970
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To: I want the USA back

The easiest way to accomplish this is through inflation.

Government overspends on its favorite groups and doesn’t fund it directly, but just by printing money. Meanwhile the purchasing power of your retirement and bank accounts melts away.

He wasn’t kidding when he told Joe the plumber that he wanted to spread the wealth around.

It’s just amazing to me that 1/2 the country still hasn’t figured it out yet.


45 posted on 12/10/2013 8:11:06 AM PST by crusher2013
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To: Old Yeller
Thats because they spend all their money on bling, low riders, spinner wheels, and on and on. Our money, no less.

Of course...we all know that there are no honest hard-working blacks or latinos out there who have simply fallen upon difficult times.
46 posted on 12/10/2013 8:13:52 AM PST by mmichaels1970
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To: reaganaut1

No worries! Just take money from those evil, privileged whites and give it to them!


47 posted on 12/10/2013 8:14:16 AM PST by Nea Wood (When life gets too hard to stand, kneel.)
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To: CaspersGh0sts

Somehow, individual choices and the results of those choices just “don’t compute” with leftists.

It affirms my assertion that leftism/liberalism is based on the lies of the serpent, the first of which was “you will not die”, ie, that there will be, and should be, no consequences for wrong choices.


48 posted on 12/10/2013 8:15:31 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: reaganaut1

Key statement from the Executive Summary of the report this article is based on:

“Finally, the wide racial gap in retirement assets holds even after accounting for age and income.”

It’s always good to read primary sources rather than editorialized “news” articles.


49 posted on 12/10/2013 8:23:06 AM PST by VanShuyten ("a shadow...draped nobly in the folds of a gorgeous eloquence.")
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To: E. Pluribus Unum
Poor people have poor ways.

And those who do save wind up paying for them.

50 posted on 12/10/2013 8:24:01 AM PST by dfwgator
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