LOS ANGELES (CNS) — Latinos in California are least likely to work for an employer that offers a retirement plan, and even among those who do have access to a workplace plan, relatively few actually take advantage of it, according to a report released Wednesday, May 6.
According to the report by the National Council of La Raza and The Prudential Foundation, about 3.8 million California Latinos lack access to a workplace retirement plan.
“California’s makeup represents the future of America, making our state the ideal place to seek solutions to growing economic inequality,” said Delia de la Vara, vice president of the NCLR California Region.
“Our study shows that California has the opportunity to prevent a national retirement crisis by expanding options for Latinos and others to save for retirement in the workplace.”
The report noted that more than 39 percent of the state’s workforce is Latino, and Latinos are expected to account for the most growth in the American workforce through 2050.
Backers of the report said Latinos would benefit most from the California Security Choice Retirement Savings Program, which was passed into law in 2012 and would provide Individual Retirement Accounts for workers whose employees do not provide retirement plans. The program is still being developed by the state.
“While there is not one answer to our retirement savings challenges, Secure Choice could serve as a model for the rest of the nation in how to expand access and participation in workplace plans,” de la Vara said. “The success of Secure Choice will depend on how successful it is in converting Latino workers into savers.”