Photo: Report: Lawmakers Need to Account for Minority Population When Considering Social Security's Future
In a recent report released by Global Policy Solutions, the rates of reliance of minorities on Social Security were examined, and revealed it is, in large part, due to disparities and wealth and income.
With the U.S. population expected to be “majority minority” by 2042, the number of ethnic minorities relying on Social Security will cause a change in the sustainability of the government aid program.
The report, Plan for a New Future: The Impact of Social Security Reform on People of Color, points out that “the vast majority of children of color are born into lower-income, low-wealth households, “ caused by a discriminatory labor market practices and social policies. Add to that the fact that “socioeconomic circumstances of families of color have been shaped by increased economic insecurity and stagnating wages for working class” and you have a large number of minorities already relying on a program that is currently on a path to destruction. And when they retire, they will likely be looking to Social Security for support just like millions of other Americans who have paid into the program their entire lives.
This research points out just how necessary it is to overhaul the Social Security program, as the number of minorities in the U.S. will continue to grow to the point where “minority” is no longer an accurate description for people of color.
The graph below shows the number of minorities who relied on Social Security for 90 percent or 100 percent of their income (2008).
In the end, as legislators look to make changes to the program while also trying to reduce the country’s deficit, it is obvious that special attention needs to be paid to the changing U.S. population, and the future needs of people of color.
“As people of color transition to be- come the majority of the U.S. workforce and eventually the majority of the older adult population, it is important to consider how these populations use Social Security and how the program can be modernized to meet the needs of an increasingly diverse and economically insecure 21st century workforce.”