Journal Article Hispanics’ Retirement Transitions and Differences by Nativity
Stipica Mudrazija, Richard W. Johnson, Claire Xiaozhi Wang
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This study examines differences in retirement decisions between older Hispanics and non-Hispanics, with a special focus on the role of nativity. We use 1998-2012 waves of the Health and Retirement Study to estimate survival models of retirement and compare retirement transitions for U.S.-born Hispanics, foreign-born Hispanics, non- Hispanic Whites, and non-Hispanic Blacks. We find that Foreign-born Hispanics retire significantly later than other racial and ethnic groups. Controlling for personal characteristics, their risk of retirement is 39% lower compared with non-Hispanic Whites. Retirement transitions do not differ significantly between U.S.-born Hispanics and non-Hispanic Whites. Difference in retirement timing between U.S.- and foreign-born Hispanics may partly be due to lower incomes and wealth accumulation of foreign-born Hispanics. Workforce development initiatives, policy initiatives promoting retirement savings, and Social Security reforms could improve future retirement security for older Hispanics, and make retirement a viable option for more foreign-born Hispanics.

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Research Areas Wealth and financial well-being Aging and retirement
Tags Social Security Economic well-being Asset and debts Older workers Employment and income data Pensions Wages and nonwage compensation Immigrants and the economy Retirement Retirement policy Latinx communities
Policy Centers Income and Benefits Policy Center