Table 3 profiles the economic and demographic factors that influence a pre-retiree’s ability to save. The results highlight the impact of income, family structure, race, and education on the accumulation of financial and retirement assets, the pre-retiree’s standard of living as measured by net worth, and the amount of debt being serviced. Households with higher income were expected to accumulate more for retirement, while households with lower income were expected to have limitations in their ability accumulate retirement assets. As hypothesized, as the income level increased, the average amount of financial and retirement account assets increased. While each additional threshold of income represented a significant increase in financial …show more content…
Surprisingly, the difference in net worth between the two groups was only 4.6%. Moreover, single pre-retirees with children experienced the greatest challenge of accumulating financial and retirement account assets. The single cohort with children had only accumulated an average balance of $17,362 in retirement account assets. Within the family structure, single with children appears to be the most vulnerable group in preparing for retirement. Race was expected to factor into determining the impact of consumer debt on the ability of pre-retirees to save for retirement. This study hypothesized that non-White pre-retirees were expected to accumulate less in retirement assets as compared to White households. As hypothesized, White households accumulated significantly higher financial and retirement account assets as compared to the other groups, with an average account balance of $491,208 in financial assets and $111,773 held in retirement accounts. In addition, White households also had the highest average net worth. Table 3 illustrates that Black households accumulated the least amount of financial assets among the races and Hispanic households accumulated the least amount of retirement account assets. While Black households had the lowest average debt balance of any race, the debt to equity ratio was the highest among the groups due to the lower average net worth in comparison to the average debt balance. Morever,
When it comes to the data and methods, this study used the Federal Reserve Board’s Survey of Consumer Finances (SCF), which is a repeated survey that includes the information on household income and wealth holdings; the Federal Reserve conducts this survey every three years. To test the hypothesis there are
In the study, “Easy Money or Hard Times? Health and 401(k) Loans”, Weller and Wenger (2012) examined whether health status and health insurance coverage could predict the likelihood of having a defined contribution (DC) loan using data from the Federal Reserve’s triennial Survey of Consumer Finances from 1989 to 2007. The SCF provided detailed information on household assets and debts, including DC loans. The analysis focused on households between the ages of 25 and 64. The data are all survey based with households as the unit of analysis. All demographic characteristics, such as educational level, race, and age refer to the
Whenever a second source of income is presented into the equation, it allows for an increased in savings. Moreover, their combined income overcompensates for the accrued expenses, which then they can establish how much of their income can be carried over to their savings account. Additionally, a combined income allows for an opportunity to purchase a home and one important reason behind it “is the addition of wife’s earnings to family income” (Hanson and Ooms, 624), which generated an increase number of home ownership, especially in young families below the age of 35 during the 1980s. Unfortunately, for lower class single-parent households owning a home was much more difficult and a great deal is because they don’t generate enough income to be able to save for a future
According to a study by Philliber (1977), “As the United States emerged from the Great Depression with a revitalized economy, Americans boasted of an unprecedented standard of living extended to an increasing but already very large proportion of citizens” (p. 375). This increase in standards of living proved good for the economy as businesses flourished with consumers drive to purchase new things. Philliber did a study to explain this in reference to how African-Americans perceived affluence, and the findings of Philliber’s study suggested that because blacks are not in the socio-economic level in regards to education or income, they perceive greater affluence in America (Philliber, 1977, p. 379). This is mainly because they have been turned down by a number of opportunities because of their race believing that the affluence was left only to the whites in the country. To compete with this and achieve a personal level of affluence, African-Americans would spend more money on things that would display affluence, such as cars and other things. Without having the same economic status to maintain these items, credit debt was often the result. Without the education or income necessary to maintain such a lifestyle, it became apparent that this drive and aspiration for affluence left a negative impact in the economy and African-American
According to the US Census Bureau, as of July 1, 2015 the estimated population of the United States was 321.4 million. Of this number, the percentage of people who identified as Black or African American alone was 13.2 percent. There were no estimates for people who identified as Black or African American in combination with one or more additional races. (Population). According to the 2010 U.S. Census, on April 1, 2010 the U.S. population was 308.7 million and out of that number, 13 percent or 38.9 million people identified as Black or African American alone and one percent or 3.1 million people identified as Black or African American in combination with one or more additional races. These two groups combined total 42.0 million, or 14 percent
The equitable wealth disproportion between African Americans and Whites is still on the rise. Researchers have identified systematic barriers affecting the ability for African Americans to accumulate wealth. In addition, researchers indicate several possible factors such as, less intergenerational inheritance, higher unemployment and lower incomes (Desilver, D, 2013). Impoverished generations have been unable to escape their restricted economic condition. Whites have gained an economic opportunity for every unfavorable condition that has impeded African Americans economic opportunity over time forging grounds for economic disparity. Because of unfavorable conditions due to the effects of slavery, generations of African Americans have had to bear racism and inequality. According to Pew Research the median household income of a family of three in 2011 was $39, 760 for African Americans in whereas White American Family median household income is $67, 175 a household income difference of $27, 000 (Morin, R
The youth unemployment rate for African Americans is almost doubled compared to the youth unemployment rate for white Americans. This makes it that much more harder for black Americans to find sources of repayment since white Americans are able to get jobs easier. According to Adams, the average African American graduates with roughly 30,000 dollars worth of student loan debt (Adams 1). As the younger generation of blacks leave college with student loan debt that they are unable to payback, their ability to become homeowners and their ability to increase their wealth has diminished. Charlene Crowell explains, “The domino effect of debt begins with a student loan and then delays the ability to qualify for a mortgage…the ability to gain wealth is limited if not stymied”. The domino effect is the main reason the majority of the black community is unable to reach the middle class. A college graduate in debt and not having the ability to pay their loans off in time because no jobs are available is the scenario for many blacks causing them to experience poverty. Julie Margetta Morgan says, “With high unemployment and underemployment and so few options for dealing with debt, it should come as no surprise that the delinquency rate on student loans is so high” (Morgan). The below average economic state of the United States doesn’t give African Americans the ability to successfully pay their debt back on time.
Throughout history there have been many contributions to Western civilization made by the Ancient Greeks. The Ancient Greeks contributed in the areas of art, democracy, sports, architecture, theater, philosophy, math, and science. These contributions were the forefront and beginning ideals that were established so many years ago, but are still used today. They were responsible for many contributions to Western civilization, the Greeks had the first known democracy, they were known for their amazing architecture, and the Ancient Greek Olympics are still carried out today.
“Families of color will soon make up a majority of the population, but most continue to fall behind white in building wealth” (Nine Charts about Wealth Inequaliy in America, 2015). Comparing in 1963 and 2013, 1963 average wealth of whites was $117,000 versus in 2013 the average was $500,000 or higher. The racial wealth gap grows sharply with age. White families tend to earn more wealth within their lifetime than an African American or Hispanic. In their 30’s, the average for white families is $140,000 more than an African American families or Hispanics. By the time they are in their 60’s, they have earned more than $1 million. Even though the median wealth by race is lower, the dollar gap grows age, the ratio doesn’t grow the same way. The whites have earned seven times more median than African Americans between their 30’s and
Housing and home ownership in the United States have continued to increase among different races even though it was hit by the great recession period. The wealth of white households was 13 times the median wealth of black households in 2013. This is an increase when compared to
The Drug Policy Alliance and other activist groups continue to advocate for health-based reforms, drug decriminalization, safe consumption sites, and criminal justice reform. The U.S. government can only relieve drug abuse by treating addicts through rehabilitation and preventing the use of drugs through education. The war on drugs collateral damage, measured in terms of social harm, has become too intense to ignore. We need to change the approach: the problem of substance abuse is a health problem, not a criminal justice problem.
Envision feeling cold, starved, petrified, and alone, just getting home to find an eviction notice, perhaps a letter of foreclosure hanging from the door. As the room goes grey and begins to spin, four words begin to echo in the background, “Is this really happening?” All resources are exhausted and Social Security proves ineffective. Fear has taken over. Thoughts of life in a shelter cloud the room. The bills are piling high, as bank accounts begin to dwindle. Unfortunately, this is the harsh certainty of many people in the aging community. Retirement is a critical life event that everyone has to undergo, through being unprepared, many fall victim to poverty in old age. Individuals should utilize Individual Retirement Accounts,
As an eighth grader in the United States of America, I have grown up with an African American president for more than half of my life, and, therefore, the most diverse administration in U.S history. As an eighth grader in New York City, I have grown up in an environment where almost 70% is composed of people of color, making this city amongst the ten most racially diverse in the world. Correspondingly, the world in my eyes is far more different than that represented in To Kill a Mockingbird. In over 80 years of American history (1930s-2017) we have faced immense racial and social progress; The Civil Rights Act of 1964 outlawed public segregation and employment discrimination and four laws have since been added to prevent discrimination. In the text, this improvement was not present. During the trial, white people sat on the first floor and black people sat on the balcony; Jem and Scout are brought to an all-colored church
Not only that, but many parents are postponing their retirement because they are helping their young adult children with their debts, studies or their housing. This can be very costly for the parents since they oftentimes have to worry about their own future and the costly expenses that come with retirement, and to provide for their kids who are currently relying on their support. This situation is even worse if the parents are a part of the sandwich
With the workforce in America decreasing due to hard economic times, there is no guarantee the money put into the reserve will sufficiently support a generation when it is time for retirement. Depending on Social Security to support a person financially when ready to retire, will leave that individual in even more of a struggle than the beneficiaries trying to survive in these earlier years of the 21 century. Social Security benefits represent about 41% of the income of the elderly; if there is not enough to support even half of the elderly’s financial needs now, there is no reason a younger person should depend on it alone for retirement (Dewitt, 2010) in the future.