EmploymentBased Strategies for Closing the Racial Wealth Gap
Employment-Based Strategies for Closing the Racial Wealth Gap: The Role of Social Security MAYA ROCKEYMOORE, PH. D. SEPTEMBER 2008
Employers and Economic Security Retirement Health/Dental/Life Disability
Social Insurance Supplements Social Security Medicare Workers Compensation Unemployment Insurance
Social Security’s Vital Functions Protection Against Risk Old Age Inflation Low Earnings Social Security Disability Death
Distribution of Benefits by Type
Adult Beneficiaries by Gender, SSA 2006 Women represent 58 percent of all Social Security beneficiaries age 62 and older and approximately 71 percent of all beneficiaries age 85 and older.
Children Receiving Benefits by Type of Benefit and Race, SSA 2005
Use of OASDI by Type of Benefit and Race, SSA 2006 African American Caucasian Social Security Administration, Annual Statistical Supplement, Table 5 A 1, 2005
Use of OASDI by Type of Benefit and Race, SSA 2006 Other Caucasian Social Security Administration, Annual Statistical Supplement, Table 5 A 1, 2005
Pensions and Assets Upon Retirement by Race and Ethnicity (SSA, 2004) Source: Income of the Population 55 and Older, 2004, Social Security Administration, Table 2. A 3
The Retirement Dilemma Employersponsored Pensions Social Security Retirement Personal Savings
Percentage of Poor, Age 65 and Older SOURCES: U. S. Census Bureau, Current Population Survey, public-use file of the March 2005 Income Supplement. Data for 1970 and 1975 are based on the 1970 Census of Population controls.
Social Security Retirement Benefits Are Important for All Americans Social Security is: the only source of income upon retirement for 22 percent of Americans (SSA 2004) the only source of retirement for 40 percent of African American seniors and 41 percent of Hispanic seniors (SSA, 2004) Without Social Security: the poverty rate among the elderly would be 48 percent the poverty rate for African American seniors would more than double from 22 percent to 57 percent (AARP, 2003) almost 33 percent of older Hispanics would fall into poverty (AARP, 2003) more than two-thirds of unmarried elderly women would live in poverty (IWPR, 2005). For unmarried women – including widows – age 65 and older, Social Security comprises 53 percent of their total income (SSA, 2006). Nearly 20% of unmarried women 65 and older live below the poverty line, compared with 5% of married elderly women.
Social Security Reform Needs and Challenges Social Security currently penalizes: Modest-income dual earning couples Single earners with kids The very old Minorities applying for disability Reform should include attention to Increased poverty reduction (minimum benefit) Equitable distribution of benefits (family assumptions) Facilitating access to disability benefits for those who need it Support for child survivors through college
The Asset House INDIVIDUAL ASSET ACCUMULATION Real estate, businesses, private savings, stocks/bonds Politics Policy COMMUNITY ASSETS Kinship networks, culture, faith–based institutions, community nonprofits, finance and education institutions Beliefs POLICIES SUPPORTING INDIVIDUAL & GROUP ASSET ACCUMULATION Progressive: tax structure, education policies and incentives, community development programs and incentives, wealth creation programs and incentives, housing policies, health programs and incentives, safety net programs Fair and accessible legal justice system SOCIAL INSURANCE – COMMUNAL ASSETS Social Security, Medicare, Unemployment Insurance, Workers Compensation © Global Policy Solutions, LLC, 2006 Media
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