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Social Security primary source of retirement income for African-Americans…New report finds without Social Security half of older African-Americans would live In poverty

 CHICAGO, Nov. 2 /PRNewswire-USNewswire/ -- While Social Security is a key part of retirement for most people, without the program the overwhelming majority of African Americans age 65 and older would live in poverty. According to a new report by AARP's Public Policy Institute, nearly 80 percent of older African Americans rely on Social Security for 50 percent or more of their income.

 AARP is working in Illinois with employers, business and community leaders to increase financial security within the African American community. Some of the efforts focus on implementing measures, such as the auto-enrollment of employees in 401k plans, to better prepare employees for retirement.

 "Nearly 75 million working Americans do not have a way to save or plan for their retirement," says Evelyn Gooden, AARP Illinois State President. "In Illinois AARP is working hand in hand with employers and community leaders to provide stronger financial security for African Americans of all ages -- this study clearly shows we have a lot of work to do."

While the financial security of persons over 65 has generally improved over the last 30-plus years, this improvement does not apply to all minority groups, including African Americans. In 2005, African Americans accounted for 8.4 percent of the over-65 population, but 19.3 percent of those over 65 living in poverty. For nearly half (44.3 percent) of older African Americans, Social Security is their sole source of income.

    "Further steps must be taken to educate African Americans about their

options for saving and steps must be taken in the workplace so they have

all the resources available to do so," added Gooden. "Not taking advantage

of employer sponsored programs like a 401k, especially since many companies

match employee contributions, is like leaving money on the table."

 While nearly half (49%) of American workers do not participate in an employment-based retirement plan, 30% do not take full advantage of their 401k. With traditional defined benefit pensions on the decline and Americans saving less and less for their retirement, new steps are key to establishing financial security.

 AARP also supports federal auto- IRA legislation to provide employees with direct-deposit payroll deductions to an IRA at a financial institution. The employer would not have to contribute to such an account, nor would they hold any liability for investment decisions.

 In Illinois and across the nation AARP members are engaged in Divided We Fail -- http://www.dividewefail.org -- a grassroots movement to raise the issues of financial security and health care to the political forefront and press candidates and lawmakers for answers and solutions.

The full report, African Americans Age 65 and Older: Their Sources of Retirement Income can be found at: http://www.aarp.org/research/assistance/lowincome/fs137_aaincome.html.