The whites' exodus foreshadows a Baby Boom phenomenon expected to loom even larger later unless other factors (war, tumbling markets) change the situation. During the late 1990s and early 2000s, the Baby-Boomer generation was entering its 40s and 50s. Boomers are now enjoying their highest career earnings. Many have also worked for the same company for many years and have accumulated sizeable retirement accounts. These factors contribute to the incentive to retire early. Over the years, the average retirement age has continued to decline from 68.3 in 1950 to a projected age of 61.5 in 2005. This could be a sign that pension and retirement plans are providing more post-retirement income; many people do not have to wait for Social Security entitlements (at age 65) in order to retire.
Blacks and Hispanics are leaving the workforce at lower levels for two reasons. Fewer blacks and Hispanics are at or near the retirement age. Many are working beyond age 65: they earn less and fewer have private pension and retirement plans. They have less incentive for early retirement, must wait for Social Security entitlement, and many must continue to work even after age 65 until forced out by poor health. The following table shows the median family net worth for 1992, 1995, and 1998. For all three years reported, median family net worth for blacks and Hispanics remained considerably below that of whites. Therefore, with little financial security, more blacks and Hispanics are staying in the workforce.
Median FamilyNet Worth, 1992-1998
| 1992 | 1995 | 1998 | ||
| Hispanic | $4,300 | $5,300 | $3,000 | |
| Non-Hispanic White | White | $71,300 | $65,200 | $81,700 |
| Non-Hispanic Black | Black | $12,000 | $7,900 | $10,000 |
Like blacks and Hispanics, Asians have a lower percentage of workers at retirement age. But, unlike blacks and Hispanics, Asians do not face quite the same financial uncertainty in retirement that forces others to stay in the workforce. Asians as a group are better educated and therefore earn more than all other ethnic and racial groups. According to the Social Security Administration, the median income of Asian-Americans in 1996 was $20,000. This is $1,000 more than the working-age population as a whole. A sizeable 40.3% of working age Asian and Pacific Islanders make $45,000 and more. Those earning within the $15,000-$44,999 range make up nearly as much, at 39.8%.
A discussion of the potential future workforce population comes next.
Sources: Chart data: Fullerton, Jr., Howard N., "Labor force projections to 2008: steady growth and changing composition." Monthly Labor Review, November 1999. Retirement data: Murray Gendell and Jacob S. Siegel, "Trends in the retirement age by sex, 1950-
2005." Monthly Labor Review, July 1992. Social Security Administration. "Social Security…a foundation for building a secure retirement." Social Security Retirement Planner. Retrieved October 25, 2001 from http://www.ssa.gov/retire2/index.htm. Income data: Social Security Administration. "Fact Sheet: Social Security is Important to Asian Americans," March 2001. Retrieved October 25, 2001 from http://www.ssa.gov/pressoffice/asian-fact.htm. Net worth data: Amy Friedrich and Eric Rodriguez, "Financial Insecurity Amid Growing Wealth: Why Healthier Savings is Essential to Latino Prosperity." NCLR Issue Brief, August 2001.
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