Timely Retirement in the U.S.: A Retirement Guide for Latinos

Nueva Voz · IA

Nueva IA

Many Latino workers may have to work more years due to lack of retirement savings. The National Institute on Retirement Security (NIRS) calculated a median of just $955 saved. The figure includes workers ages 21 to 64. It also accounts for those without funds in employer-sponsored plans.

The problem does not depend solely on salary. Housing, childcare, education, and debt reduce the ability to save. Therefore, small financial decisions can affect retirement for decades.

Why can’t many workers retire on time?

NIRS found that the median savings for workers between 55 and 64 years old is around $30,000. That amount may be insufficient to cover housing, food, and healthcare during old age. Hispanic workers face an additional challenge. They have less access to retirement plans offered by employers.

Social Security in 2026: when it makes sense to retire in the U.S. — Freepik

Many work in restaurants, construction, cleaning, transportation, and personal care. These jobs may not include a 401(k) or equivalent contributions. The situation also affects middle-income employees. Dan Doonan, NIRS executive director, said many families choose between paying bills and saving.

Retirement does not always occur when a person decides. The 2025 Retirement Confidence Survey revealed that 46% of retirees stopped working earlier than planned. Reasons included health problems, layoffs, and family care. Therefore, planning to work until a certain age does not guarantee that possibility will materialize.

What mistakes reduce savings?

The first mistake is starting too late. Compound growth needs time to produce results. A person who contributes $500 monthly starting at age 25 can accumulate approximately $745,000 by age 65. The calculation assumes an average annual return of 8%. If starting at age 35, the balance could drop to $340,000.