AARP: 71% of Capital Region Gen Xers, Eyeing Retirement, Fear Savings Shortfall

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Voter Survey: 72% of Gen X, 61% of Boomers May Leave in Retirement; AARP Urges State-Facilitated Workplace Savings Option.

The Capital Region’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 in Albany, Schenectady, Saratoga and Rensselaer counties. High Anxiety: New York Capital Region 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 around a quarter of them have neither a work-sponsored nor personal retirement savings account.

This high anxiety portends a potential “Gen-Xodus” from Capital Region; 72% say they’re at least somewhat likely to leave the state in retirement, as do 61% of Boomers.

The survey, which parallels an AARP statewide survey, was released today during a round-table discussion at the Glen Sanders Mansion that included Adam D. McNeill, Principal, True Living Financial, and Chuck Bell, Programs Director, Consumers Union. It found:

• 71% of Gen Xers and 55% of Boomers worry about not saving enough.
• 58% of Gen Xers and 50% of Boomers worry about not planning enough for retirement.
• 20% of Gen Xers and 27% of Boomers lack any kind of retirement savings account.
• 18% of working Gen Xers and 20% of working Boomers are not confident they’ll ever be able to retire.
• 53% of Gen Xers and 52% of Boomers feel anxious about achieving a comfortable retirement.

Among working survey respondents, 12% of Gen Xers, 22% of Boomers and 41% 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 68% of Gen X and 65% of Baby Boomer voters in the Capital Region. 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 voters’ stress, 43% of Gen Xers don’t expect to receive any Social Security and 73% of Gen Xers are either current or expected future student loan borrowers for themselves and/or their children – and around two thirds of those say the debt makes it harder, or will make it harder, to save for retirement. Among both generations, 45% are concerned about affording their utility bills and 34% their rent or mortgage in the coming years.

“Boomer flight and a ‘Gen-Xodus’ could prove a major drain on the Capital Region’s economy,” said Laura Palmer, Associate State Director of AARP for the Capital Region. “The 50+ contribute disproportionately 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, 73% 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; 80% of survey respondents worry insufficient savings will make some New Yorkers reliant on public assistance.

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AARP is a nonprofit, nonpartisan organization, with a membership of more than 37 million, that helps people turn their goals and dreams into real possibilities, strengthens communities and fights for the issues that matter most to families such as healthcare, employment and income security, retirement planning, affordable utilities and protection from financial abuse. We advocate for individuals in the marketplace by selecting products and services of high quality and value to carry the AARP name as well as help our members obtain discounts on a wide range of products, travel, and services.  A trusted source for lifestyle tips, news and educational information, AARP produces AARP The Magazine, the world's largest circulation magazine; AARP Bulletin;  www.aarp.org ; AARP TV & Radio; AARP Books; and AARP en Español, a Spanish-language website addressing the interests and needs of Hispanics. AARP does not endorse candidates for public office or make contributions to political campaigns or candidates. AARP Foundation is an affiliated charity of AARP that is working to win back opportunity for struggling Americans 50+ by being a force for change on the most serious issues they face today: housing, hunger, income and isolation. AARP has staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Learn more at  www.aarp.org

 

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