Posts Tagged "Latino"

Student Debt Plan Helps Black Retirees

For the sliver of retirees who are far behind in paying their own or their children’s student loans, Social Security can withhold part of their benefits to pay the loans back.

But college has gotten much more expensive since the baby boomers attended, and loan delinquencies are higher among working people and especially Black Americans. When today’s Black workers retire, their estimated household delinquency rate will be 5.4 percent – well more than double the rate for White and Hispanic retirees.

The question is how withholding Social Security benefits will impact the financial security of these future retirees. In cases where the federal government withholds some benefits, it garnishees the lesser of 15 percent of a delinquent borrower’s monthly retirement benefit or the amount of the benefit that exceeds $750 per month. Social Security’s average monthly benefit is currently $1,827.

The withholding practice would reduce working households’ retirement income in the future by an estimated average of 4 percent, according to the Center for Retirement Research.

Even this seemingly small decline in income can have a big impact on people who are struggling. The loss of retirement income will fall hardest on Black Americans, who are more likely to borrow for college but who earn less and will have more difficulty repaying their loans.

Whether the burden on retirees will be lightened could be determined by two lawsuits the U.S. Supreme Court is scheduled to hear later this month challenging the Biden administration’s plan for student debt relief. If the court allows the administration to proceed, the government would extend up to $10,000 in student debt forgiveness to borrowers. Lower-income students who received Pell grants to subsidize college could receive an additional $10,000.

This financial relief would wipe out the debt for a significant share of borrowers and sharply reduce the delinquencies that trigger the withholding of Social Security benefits and can undermine retirement security, especially for minority borrowers who are more likely to receive Pell grants. …
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Yes, White Men’s Career Paths are Different

White men have the most success over the course of their lives in holding on to well-paying jobs that require high-level analytical abilities and interpersonal skills, a new study finds.

They have so much success that they often remain in this challenging non-routine work – astronomer, community college instructor, and analyst are examples – well into their 60s and even 70s. This isn’t the case for everyone else.

White women and also Asian-American men and women with college degrees also frequently start their careers in positions with demands that are similar to white men. But after they pass their prime working years, this type of work declines, in sharp contrast to white men’s career paths, the researchers found.

For example, the intensity of white women’s nonroutine cognitive work, as well as nonroutine interpersonal jobs like coach or education administrator, peaks around age 40 and then starts declining. At the same time, the intensity of the women’s routine cognitive tasks increase. This trend, which continues until they retire, might happen as older women are sidelined into less challenging office work.

The study, based on occupational data and a couple of long-running surveys of workers, accomplished two things. First, the researchers followed changes since 2004 in the nature of the overall job market. The intensity of the nonroutine tasks required to do a job, rated on a scale from low to high, has declined. But jobs requiring routine tasks have gained ground.

This doesn’t seem to jibe with well-known past research showing that people who do routine work are disproportionately being replaced by robots. But perhaps the prevalence of computers and artificial intelligence in the jobs that remain have increased routinization in many occupations. Reservation and ticket agents, telephone call center representatives, and medical transcriptionists are very high-intensity routine cognitive jobs.

The second part of the analysis showed that the evolution in job demands progresses very differently for various workers as they age and approach retirement.

The focus for Black and Hispanic men is on physical labor. The demands on all men doing manual jobs lessen over time as they lose physical strength. But the racial differences are clear. …Learn More

Social Security Información – en Español

Alrededor del 14 por ciento de trabajadores y trabajadoras aquí hablan español. El Seguro Social tiene un sitio web para usted.

Translation: About 14 percent of the working-age population here speaks Spanish. Social Security has a website for you.

It’s critical that workers who speak only Spanish or are more comfortable with the language have a clear understanding of how Social Security benefits work. It’s estimated that Americans 65 and over receive just under a third of their income from the benefits, and lower-income people rely on it for much more than that.

Social Security’s Spanish-language website, which has been around in some form since the mid-1990s, provides general information about the program and also addresses issues especially relevant to this population. One example is an employer’s responsibility to report income for the one in four domestic workers in this country who are Latina.

Below are some of the general topics, as described on the website:

  • Cómo funcionan los beneficios por jubilación. (How retirement benefits work.)
  • Decidir cuándo comenzar los beneficios. (Deciding when to start the benefits.)
  • Qué cosas adicionales puede afectar sus beneficios por jubilación. (Things that may affect benefits.)
  • Lista de verificación para su jubilación. (Retirement checklist.)

If you know someone who could use this information, please pass on the link! ….Learn More

Suburban ‘Rent Deserts’ are a Problem

Boston, a city of fewer than 1 million people, is surrounded by layers and layers of suburbs linked to the city by subways, ferries, and a commuter rail. The suburbs’ opposition to a new state law requiring them to zone some land for apartments illustrates why U.S. rental housing is scarce and rents have soared.

The sprawling town of Hamilton, with 8,000 residents, told The Boston Globe that rental housing will “destroy the well-being of our community.” Other municipalities warn their schools, infrastructure, and police and fire departments will be overwhelmed by population increases or that they don’t have enough land to accommodate multifamily rental properties.

Not all of Boston’s suburbs are opposed to building more multifamily housing. Before the state law passed, the city of Newton had already started revamping its zoning regulations to encourage more rental properties around transit stops. But three out of four of the 23,000 lots in Newton are currently zoned for single family homes.

Suburban neighborhoods around the country account for more than two-thirds of “rental deserts,” according to a report by Harvard’s Joint Center for Housing Studies. The deserts are mostly white and mostly higher-income, and less than 20 percent of their housing stock is rentals, compared to a range of 50 percent to 80 percent in areas with ample rental properties. Low inventories nationwide have fueled double-digit rent increases from Idaho to Florida.

In the city of Boston, house prices have skyrocketed, so suburbs with mass transit are somewhat more affordable for lower- and middle-income workers who commute downtown to their jobs. But rental deserts, with their “not-in-my-backyard politics” are “a significant factor in limiting opportunities for rental households and for lower-income renters in particular,” the housing center said. …Learn More

Research to Look at Work, Retiring by Race

The racial disparities embedded in our work, retirement, and government systems will be front and center at the annual meeting of a national research consortium.

One of the presentations at the online meeting on Aug. 4 and 5 will explore the impact of wealth and income inequality on Black and Latinx workers at a time these populations are rapidly aging. The researchers are concerned with how their decisions about when to retire will impact their economic security.

Growing inequality “point[s] to greater risks of financial insecurity” for future Black and Latinx retirees, the researchers said.

Another paper will address a related topic: the differences, by race and ethnicity, in workers’ levels of knowledge about how Social Security benefits work. Understanding the ins and outs of the federal retirement benefit – and specifically the advantages of delaying retirement to get a larger monthly check – are critical to improving living standards in old age.

Other research will explore an area that hasn’t been well studied: government programs used by non-parental caregivers such as Black grandparents or members of Latinx three-generation households to support the children in their care. The researchers will examine minority and low-income workers’ and retirees’ use of SNAP food stamps, child care subsidies, Temporary Assistance for Needy Families, and various benefit programs overseen by Social Security.

COVID is another topic on the agenda. One study compares the financial impact of the pandemic on early retirement for different income groups with the patterns in the aftermath of the Great Recession more than a decade ago. Another study examines how mortality rates might change in the wake of the pandemic.

Research on many other topics will also be featured, including health insurance, mothers, and longevity. The agenda and information about registration are posted online. Registration is free. …Learn More

Got a Retirement Plan? Race Plays a Role

The following statistic will sound familiar since I use it regularly: about half of U.S. workers are not saving enough and may see their standard of living drop when they retire.

A major culprit in this poor state of preparedness is that millions of Americans at any given moment don’t have a traditional pension or 401(k) savings plan at work.

A new study takes a close look at who these people are and shows stark differences along racial lines. A large majority of Hispanic workers in the private sector – two out of every three – do not have access to a pension or 401(k)-style plan, and more than half of Black workers do not have access. Although the numbers are lower for Asians (45 percent) and whites (42 percent), they are still substantial.

Other estimates of private sector coverage, also from this study by John Sabelhaus of the Brookings Institution, show big gaps between high- and low-paid workers and workers with and without college degrees, and at large and small employers.

Coverage also varies from state to state: In Pennsylvania, 41 percent lack access to a retirement plan, but in Florida, 59 percent do not have coverage.

Sabelhaus is certainly not the first to document disparities in retirement plan access for different demographic groups. But his methodology advanced the ball, resulting in more reliable estimates. By using three data sources, he could compensate for their shortcomings while taking advantage of the unique information in each one. He combined recent data from the U.S. Census Bureau, the IRS, and the Federal Reserve Board. …Learn More

Mental Health Crisis is an Inequality Problem

The connection between Americans’ socioeconomic status (SES) and their health was established long ago and the evidence keeps piling up.

"Healing: Our Path from Mental Illness to Mental Health" book coverLess-educated, lower-income workers suffer more medical conditions ranging from arthritis to obesity and diabetes. And the increase in life expectancy for less-educated 50-year-olds was, in most cases, roughly 40 percent of the gains for people with higher socioeconomic status between 2006 and 2018.

More recently researchers have connected SES and mental health. The foundations are laid in childhood. In one study, the children and teenagers of parents with more financial stresses – job losses, large debts, divorce, or serious illness – have worse mental health. And COVID has only aggravated the nation’s mental health crisis.

In a new book, Dr. Thomas Insel, former director of the National Institute of Mental Health, is concerned about the impact of inequality.

Mental health in disadvantaged communities “is worse because of the world outside of health care. It’s our housing crisis, our poverty crisis, our racial crisis, our increasing social disparities that weigh heaviest on those in need,” he writes in “Healing: Our Path from Mental Illness to Mental Health.” …Learn More