Social Security and Retirement of Older Blacks and Hispanics

Little research has examined how income inequalities by race/ethnic origin shape retirement decisions. Using Health and Retirement Study data from 2000–2020 linked to restricted Social Security Administration records, we calculate Social Security wealth accounting for differences in earnings histories, employment gaps, and survival probabilities. We find that Social Security wealth encourages retirement for Blacks and Whites but not for Hispanics. The limited responsiveness of Black and Hispanic individuals to other well-documented retirement determinants may point to labor market barriers and discrimination that diminish differences within groups and highlight the need to conduct analyses separately by race/ethnic origin.