News by SB Informer

News

African-American Community Leaders Address Retirement Income Needs of Minorities

SB Informer
Friday, October 20, 2006; 01:49 AM

The National Caucus and Center on Black Aged (NCBA) has joined forces with Americans for Secure Retirement in an effort to promote policies to help all Americans maintain a steady income in retirement, especially at-risk groups such as minorities. The NCBA will become the coalition's 38th member in its mission to provide Americans with retirement planning options that guarantee a steady paycheck for life.

"The retirement needs of African Americans are not adequately met by current retirement policy," said Ms. Karyne Jones, President of The National Caucus and Center on Black Aged. "Only 45 percent of all African-American workers participated in employment-based retirement systems in 2002, as compared to 53 percent of Caucasian workers. This gap in retirement preparedness must be addressed by policy makers."

The National Caucus and Center on Black Aged (NCBA) works to eliminate obstacles to fairness and equal access for low-income African-American and minority senior citizens. Jones is regarded as very knowledgeable on retirement policy issues; she testified in front of the Senate Special Committee on Aging in March 2005 on the increased challenges that women face in retirement.

NCBA joins 37 other members of Americans for Secure Retirement in supporting passage of the Retirement Security for Life Act (H.R. 819/S. 381). This legislation would provide a tax incentive available to any retiree to encourage investment of some of their individual after-tax savings in retirement vehicles like annuities that provide a guaranteed lifetime income. Under the proposal, individuals would not pay federal taxes on one-half of the income (up to a maximum of $20,000 annually) generated by annuities that make lifetime payments. For a typical American in the 25% tax bracket, this would provide an annual tax savings of up to $5,000.

The Retirement Security for Life Act is being led by a bipartisan group of sponsors in Congress, including Reps Nancy Johnson (R-CT), John Tanner (D-TN), Phil English (R-PA) and Stephanie Tubbs Jones (D-OH) in the House of Representatives and Senators Gordon Smith (R-OR), Kent Conrad (D-ND), Olympia Snowe (R-ME) and Hillary Rodham Clinton (D-NY) in the Senate. The list of congressional supporters is growing daily with 78 cosponsors in the House, including a majority of the Ways and Means Committee Members, and 8 cosponsors in the Senate.

Other Members of the Americans for Secure Retirement coalition include: American Agriculture Movement, American Agri-Women, American Corn Growers Association, American Council of Life Insurers, American Homeowners Grassroots Alliance, American Small Business Coalition, Association of Advanced Life Underwriters, Black Women Enterprises, Business and Professional Women/USA, Citizens Against Government Waste, Committee of Annuity Insurers, Federation of Southern Cooperatives, Financial Services Roundtable, Hispanic Business Roundtable, Hispanics Impacting Public Policy, Intertribal Agriculture Council, The Latino Coalition, National Association of Female Executives, National Association for Variable Annuities, National Association of Farmer Elected Committees, National Association of Hispanic and Latino Farmers & Ranchers, National Association of Independent Life Brokerage Agencies, National Association of Insurance and Financial Advisors, National Association of Small Disadvantaged Businesses, National Community Pharmacists Association, National Consumers League, National Taxpayers Union, Oklahoma Farmers Union, Soybean Producers of America, Small Business and Entrepreneurship Council, U.S. Chamber of Commerce, Women Entrepreneurs, Inc., Women Impacting Public Policy, Women in Need, Women's Institute for a Secure Retirement, Women Involved in Farm Economics and Women Presidents' Organization.

For more information on the challenge of managing retirement income to last a lifetime, visit http://www.paycheckforlife.org/.