Social Security and People of Color

Social Security is especially important to people of color because they are less likely than white Americans to have pensions or retirement savings. In 2010, about two fifths (40 percent) of those age 65 and older received income from retirement benefits other than Social Security, such as defined benefit pensions, Individual Retirement Accounts (IRAs), 401(k) plans and related savings. People of color were less likely to receive income from these sources to supplement Social Security. For instance, among seniors over age 65 in 2010, 30 percent of African Americans and 19 percent of Hispanics received such income, compared to 42 percent of whites. For those who owned retirement accounts, the median value for non-whites and Hispanics ($25,000) was less than half that of whites and non-Hispanics ($54,000).

Social Security is the sole source of income for 36 percent of Hispanics and African Americans, and 25 percent of Asian and Pacific Islanders, as compared to 19 percent of whites aged 65 and older.

Because people of color generally earn less than whites, they benefit from Social Security's progressive benefit formula, which replaces a higher percentage of pre-retirement earnings for low-wage workers.

Social Security's survivor and disability benefits are important sources of income security for many people of color. Because African Americans have lower life expectancy and higher disability rates before age 65 as compared to whites, they are more likely to receive Social Security disability and survivor benefits.

In 2010, African Americans were 12.9 percent of the United States population between the ages of 20-64, and 18.5 percent of all disabled-worker beneficiaries. African American children accounted for 17.0 percent of all U.S. children (under age 18) and 22 percent of all children receiving survivor benefits, 22 percent of all children of disabled-worker beneficiaries, and 18 percent of all children of retired workers receiving benefits.

For more information, see:

• How Would Seniors Fare – by Age, Gender, Race and Ethnicity, and Income – Under the Bowles-Simpson Social Security Proposals by 2070?, Social Security Brief No. 38
• Tough Times Require Strong Social Security Benefits: Views on Social Security Among African Americans, Hispanic Americans, and White Americans, Social Security Brief No. 32
• Testimony of Virginia P. Reno at "Social Security at 75: More Necessary Than Ever"
• Strengthening Social Security for Farm Workers: The Fragile Retirement Prospects for Hispanic Farm Worker Families
• Social Security and Retirement Income Adequacy, Social Security Brief No. 25
• Uncharted Waters: Paying Benefits from Individual Accounts in Federal Retirement Policy, Study Panel Report (Chapter Two)
• Uncharted Waters Fact Sheet, Financial Demographics

Read what some NASI members think:*

• Jennifer Clark: “Native Americans Voice their Support of Social Security” (2012)

* The views of NASI members are their own and not an official position of the National Academy of Social Insurance or its funders.