FOR IMMEDIATE RELEASE
February 23, 2010
AARP Media Relations, firstname.lastname@example.org
AARP Survey: African Americans 45+ Hit Particularly Hard By Economic Recession
Findings Show African Americans More Likely to Help Family, Friends Cope with Financial Hardships
WASHINGTON, DC — While millions of Americans have experienced hard times during the economic recession, the environment for many African Americans age 45+ and their families is particularly difficult, according to a new survey by AARP.
The survey, which is part of AARP’s continued look at how Americans age 45+ are faring in this economy, found that over the last 12 months, a third (33%) of African Americans 45+ had problems paying rent or mortgage, and 44% had problems paying for essential items, such as food and utilities. Nearly twice as many African Americans 45+ lost a job than the general population (18% vs. 10%), and almost one in four (23%) lost their employer-sponsored health insurance.
“We have seen the devastating impact that this economic recession has had on the African American community—lack of job prospects, problems paying for basic needs including medical care, and families struggling to make ends meet,” said AARP Vice President Edna Kane-Williams.
AFRICAN AMERICANS 45+ MITIGATING IMPACT OF RECESSION
African Americans have taken some positive steps to lessen the sting of the recession. Half of those surveyed postponed plans to travel and two-thirds (67%) cut entertainment expenses. Even in the tough employment environment, 12% of African Americans age 65+ returned to the workforce from retirement, while 19% of African Americans age 45 to 64 increased the number of hours worked and 12% took a second job.
Unfortunately, African Americans 45+ have been forced to make increasingly difficult decisions to cope with this economic downturn—decisions that could have serious long-term consequences. A third (34%) stopped putting money into a 401(k), IRA or other retirement account, and a quarter (26%) prematurely withdrew funds from their retirement nest eggs to pay for living expenses, including mortgage or rent, health care, education expenses, and for other reasons. More than three in ten (31%) have cut back on their medications, and 28% have carried a higher balance on their credit cards during the past 12 months.
“The recession has driven many African Americans to make hard choices now that may lead to serious problems down the road,” added Kane-Williams. “Raiding your nest egg or ending contributions, even in the short-term, will have long-term consequences because you will have less time to make up the losses. Cutting back on your health care can compromise your health now and lead to higher health care costs as you age.”
MANY TURN TO FAMILIES, COMMUNITIES FOR SUPPORT AND INFORMATION
Faced with the extraordinary impact of this economy, African Americans 45+ are more likely to turn to family or the community for assistance, and are more likely to help family members and friends cope with financial hardships.
About one in five African Americans 45+ (22%) consulted friends or family members about finances. Eighteen percent had a child move in for financial reasons, and 44% helped a child pay bills or expenses. Almost one in five (18%) helped a parent pay for basic necessities. African Americans age 45+ were more than twice as likely as all Americans 45+ to seek financial assistance from family, friends, charities and churches (28% vs. 13%).
While some African Americans age 45+ are looking for resources and tools to provide financial information, many may not be aware or are not taking advantage of the accessible resources available to them. African Americans 45+ were half as likely as all Americans in that age group to seek out a financial planner (12% vs. 24%), and only one in ten (11%) consulted online resources about financial planning. Thirteen percent have taken training to get a different type of job, and 18% have attended a job fair to help with their career or job search. Three in ten reported taking training to keep skills up to date or learn new skills for their current job.
“This survey shows that people are managing as best they can in this economy and reaching out for assistance from family and friends. Millions of Americans are hurting today. The good news is that there are many resources available to help people get back on track, and to help families make the best decisions for their health and economic future,” said Kane-Williams.
AARP offers free online resources, publications, and information on events to help Americans cope in this economy—available at www.aarp.org/realrelief. These include AARP Real Relief, which offers a wide range of tools to help people look for work, manage finances and find public benefits; financial tip sheets that help people save and plan for retirement; and the 2010 AARP Financial Freedom Tour, which features workshops and financial advice clinics for African American and Hispanic communities in particular.
AARP commissioned the survey, titled “African American Experiences in the Economy: Recession Effects More Strongly Felt.” The telephone survey included a nationally representative general sample of 1002 adults ages 45+ and a targeted sample of 405 Africans-Americans age 45+. It was conducted January 15-27, 2010 by Woelfel Research, Inc.
For more information or to view the complete survey, visit http://www.aarp.org/research/surveys/money/econ/trends/articles/economyaa.html or contact AARP Media Relations at 202-434-2560.
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