Correction: New Poll Shows Hispanic Americans Vulnerable in Retirement: Lack Savings, Employer Benefits

WASHINGTON, Oct. 24 /PRNewswire/ -- Americans for Secure Retirement (ASR) and the Latino Coalition today released a poll whose results show that America's Hispanic community faces significant challenges in preparing for a financially secure retirement because of low level of savings and limited access to employer retirement plans such as 401(k)s.

The poll found that 7 out of 10 Hispanics have less than $5,000 saved for retirement outside of Social Security and that a majority are not offered 401(k)s, the most common retirement benefit offered by employers. The survey also revealed that 64% of Hispanics are not confident that Social Security and pensions will provide sufficient income for retirement.

"These findings highlight the reality that a majority of Hispanics living in the U.S. are not prepared for retirement and are highly vulnerable to poverty in old age," said Hector Barreto, Chairman of the Latino Coalition. "It is time for Congress to find ways to address the retirement security needs of Hispanics."

One retirement policy tool that garnered support from those interviewed was tax incentives for people to annuitize their savings or assets through retirement vehicles such as lifetime annuities that provide a steady stream of income for life. Nearly three quarters of those interviewed -- 72% -- said they would favor such an incentive.

"The fact that nearly two-thirds of Hispanic American voters doubt that Social Security or pensions will be enough to carry them through old age means that retirement policy will increasingly become an important issue for Latino voters," said John McLaughlin, Founding Partner, McLaughlin & Associates/Latino Opinions.

The joint ASR-Latino Coalition survey draws attention to the particular challenges that many Hispanic adults living in America face in preparing for retirement. Since many Hispanic workers do not work for employers that provide 401(k)s and saving for retirement is low, strong incentives to encourage individual planning are necessary to prevent them from falling through the cracks. And, it's not only Hispanics at risk. According to the Employee Benefits Research Institute, 70 million American workers lack access to any retirement benefits through their employers and, along with Hispanic Americans, would have to rely on personal savings and Social Security to finance their retirement.

"The retirement challenges facing the Hispanic community are similar to those faced by millions of other Americans. That's why it's important for policymakers to consider policies that help all Americans secure a steady stream of income to last as long as they live," said ASR spokesperson Juan Cortinas.

The Latino Opinions poll surveyed 1,000 Hispanic adults and has a +/- 3.1% margin of error. Interviews were collected September 26-30, 2006 via telephone by professional English and Spanish speaking interviewers.

  Among the key findings of the poll are:

  * The vast majority of Hispanic adults have less than $5,000 saved for
    retirement outside of Social Security.

  * 70.9% of Hispanic adults have less than $5,000 saved for retirement
    outside of Social Security.

  * The percentage of those who have less than $5,000 saved is very high
    across all age groups.

  * 69.4% of those over age 40 have less than $5,000 saved and that number
    goes up to 72.5% for those over 55 years of age.

  * A widespread lack of access to work-place sponsored retirement benefits,
    such as 401(k) plans, exists among Latino adults.

  * 60% of Hispanic adults are not offered 401(k) plans by their employer,
    indicating it is likely that few have access to any type of work place
    sponsored retirement benefits.

  * Hispanic adults support Congress taking steps to make it easier for
    individuals to save for retirement on their own.  Specifically, they
    strongly support proposals that would provide a tax exclusion for the
    income from lifetime annuities.

  * 72% of Hispanic adults support a proposal that would promote lifelong
    income.

  * 64% of registered Hispanic voters said Social Security and pensions
    would not provide enough income for retirement.

Americans for Secure Retirement is a coalition of 38 members representing Hispanic, women's, small business, agriculture, and African American groups as well as the life insurance industry. ASR advocates for policies that help and encourage Americans to secure retirement vehicles that provide a steady stream of income for life. The coalition supports The Retirement Security for Life Act (S. 381, HR 819) which would provide a 50% tax exclusion on the income from the payout of a lifetime annuity, up to $20,000 per year. For an average taxpayer in the 25% tax bracket, this would result in $5,000 of tax savings. For more information on ASR or the poll, please visit http://www.paycheckforlife.org/.

The Latino Coalition (TLC) is a non-profit, non-partisan organization based in Washington, D.C. established to address policy issues that directly affect the well-being of Hispanics in the United States. TLC's agenda is to develop and promote policies that will foster economic equivalency and enhance overall business, economic, and social development of Hispanics. TLC is a member of Americans for Secure Retirement.