It perhaps stands to reason that people who faced numerous obstacles during their working life will face similar obstacles during their retirement. Research from USC Price highlights just how problematic this is, and how it perpetuates inequities among demographic groups.

For instance, the researchers found that disadvantaged older workers are far more likely to be forced into involuntary retirement due to things like job loss, automation, or deteriorating health. This can prompt many to turn to informal gig-style work. This results in a situation whereby historically disadvantaged groups have less control over where, when, and how much they work as they get older.

A fresh perspective

The researchers believe their work is important because, to date, much of the analysis of the older workforce has focused on those from relatively advantaged groups, so more disadvantaged workers are a more unknown quantity.

“We’ve been analyzing the population as if they all behave the same, like they all have full-time jobs and they follow this career path and then they retire,” the researchers explain. “What we really need to consider is the heterogeneity across the population.”

Pensions are a prime example, as while employer-sponsored pensions cover around two-third of white workers, this falls to just 38% of Hispanic workers. The researchers believe that such differences are often a case of occupational segregation, as white workers are more likely to work for larger firms, which will in turn provide pensions. Hispanics, by contrast, are more likely to work for smaller firms and in jobs that are less likely to come with employer-sponsored retirement plans.

Income inequalities

Of course, such inequities are not confined to pensions, and the researchers explain that they are also likely to be found in areas such as health and education, both of which will impact matters when retirement looms.

“The more advantaged workers, they not only have Social Security, but they will have other sources of income” like savings or pensions, they explain. “So the inequality continues.”

While the research was conducted in the early months of the pandemic, as in other areas, it’s highly likely that the issues raised by the study will have been exacerbated by the lockdowns introduced to quell the spread of the virus.