Living Longer for Less: Severe Financial Insecurity Among African-American and Latino Seniors

The Institute on Assets and Social Policy (IASP), in partnership with Demos, released its third report in the Living Longer on Less series, “Severe Financial Insecurity Among African-American and Latino Seniors”. This report focuses on the financial vulnerability of African-American and Latino senior households and uses a Senior Financial Stability Index (SFSI) to assess the financial stability of the households studied. Using SFSI, the report shows that 91 percent of African-American and Latino seniors face financial vulnerability, meaning that they about 9 out of every 10 African-American and Latino seniors are unable to be economically self-sufficient. The main sources of economic security and risk uncovered were: insufficient assets, high healthcare and housing expenses as well as little to no home equity. The authors suggest that in order to address poverty among African-American and Latino seniors, policymakers should promote comprehensive reforms to support working age adults’ maintenance of economic security and preparation for retirement.