Voter Survey Shows Highest-in-NY 76% of Gen X, 64% of Boomers May Leave State in Retirement; AARP Urges State-Facilitated Workplace Savings Option
Dutchess County’s Gen Xers and Baby Boomers face major retirement savings hurdles that could deprive them of financial independence in their golden years - while increasing the need for taxpayer-funded public assistance, a groundbreaking AARP survey of voters in the two generations has found.
With the first Gen Xers turning 50 this year, AARP commissioned the survey of voters ages 35-69. High Anxiety: New York Dutchess County Gen X and Boomers Struggle with Stress, Savings and Security found majorities of voters are worried about not saving or planning enough for retirement, and with good reason, since 26% of them have neither a work-sponsored nor personal retirement savings account.
This high anxiety portends a potential “Gen-Xodus” from Dutchess County; 76% say they’re at least somewhat likely to leave the state in retirement, along with 64% of Boomers – both highest in New York.
The Dutchess survey, which parallels an AARP statewide survey, was released today at a round-table discussion at the Poughkeepsie Grand Hotel that included Adam D. McNeill, Principal, True Living Financial, and Chuck Bell, Programs Director, Consumers Union. It found:
- 73% of Gen Xers and 64% of Boomers worry about not saving enough.
- 66% of Gen Xers and 59% of Boomers worry about not planning enough for retirement.
- 22% of Gen Xers and 29% of Boomers lack any kind of retirement savings account.
- 25% of working Gen Xers and 25% of working Boomers are not confident they’ll ever be able to retire.
- 64% of Gen Xers and 61% of Boomers feel anxious about achieving a comfortable retirement.
Among working survey respondents, 21% of Gen Xers, 25% of Boomers and 47% of small business owners and employees lack access to any kind of employer-sponsored savings plan – either a pension or a 401(k) type account. This lack of coverage is much worse for younger generations and private sector employees; statewide, 52% of private sector workers aged 18 to 64 – over 3.5 million New Yorkers - lack access to any kind of retirement savings plan through their employer, according to AARP research.
Workplace savings plans are critical since Americans are generally 15 times more likely to save for retirement when they have an option available for them to do so at work.
AARP NY is proposing a state-facilitated, payroll-deduction retirement savings option with no ongoing taxpayer costs that could help millions of New Yorkers help themselves achieve financial independence in retirement and avoid the need for taxpayer-funded public assistance.
The plan has the backing of a whopping 78% of Gen X and 70% of Baby Boomer voters in Dutchess County. At this summer’s White House Conference on Aging, President Obama directed the U.S. Labor Department to develop guidelines by the end of the year for states to design and enact their own workplace retirement savings plans.
“As the first Gen Xers turn 50 this year, they are juggling multiple responsibilities – caring for aging parents, trying to pay for their own or their children’s college educations, and working long hours,” said Beth Finkel, State Director of AARP in New York State. “Lost is the time to manage their finances. A state-facilitated retirement plan would ease worries and promote savings among those whose employers offer no 401(k) or pension.”
Adding to Dutchess voters’ stress, 31% of Gen Xers don’t expect to receive any Social Security and 69% of Gen Xers are either current or expected future student loan borrowers for themselves and/or their children – with about two thirds of those saying the debt makes it harder, or will make it harder, to save for retirement. Among both generations, 55% are concerned about affording their utility bills and 47% their rent or mortgage in the coming years.
“Boomer flight and a ‘Gen-Xodus’ could prove a major drain on Dutchess County’s economy,” said Laura Palmer, Associate State Director of AARP for the Hudson Valley. “The 50+ are disproportionately large contributors to New York’s GDP, not to mention their valuable cultural, family, social and volunteer contributions. We can’t afford to lose them.”
Despite their specific worries, 66% of working Gen X voters confident they’ll be able to retire expect to do so by age 65, reflecting a reality gap paralleling national trends and underscoring the need for solutions. A lack of solutions could have dire consequences; 83% of survey respondents worry insufficient savings will make some New Yorkers reliant on public assistance.
Contact: Erik Kriss, 518-360-9213, email@example.com
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