How do Immigrants Fare in Retirement?

Authors

• Purvi Sevak
• Lucie Schmidt

Abstract

Existing literature suggests that immigrants receive lower wages than U.S.-born workers with similar characteristics. This could imply that immigrant households would enter retirement at a significant financial disadvantage. In this paper, we examine the retirement resources available to immigrant families by examining Social Security benefits, pension coverage, and private wealth accumulation. Our results suggest that although immigrant families may be financially better-off in the U.S. than in their native countries, they do enter retirement at a significant financial disadvantage relative to native born households with similar characteristics.

Key Findings

• Existing literature suggests that immigrants receive lower wages than U.S.-born workers with similar characteristics. This may put them at a disadvantage at retirement.
• Although immigrant families may be financially better-off in the U.S. than in their native countries, they do enter retirement at a significant financial disadvantage relative to native born households with similar characteristics.

Full Text

Download PDF

Project

• UM07-09: How do Immigrants Fare in Retirement?

Paper ID

WP 2007-169

Publication Type

Working Paper

Publication Year

2007