Erie Gen Xers, Boomers Struggle With Basics, Unprepared for Retirement: Siena Survey

Vast Majority Haven’t Done Basic Retirement Planning; Gen Xers Favor Trump, Boomers Clinton on Social Security, Retirement; Time Ripe for Leaders to Act

Erie County Generation Xers and Baby Boomers are struggling to afford basic necessities such as food and utilities, and they’re massively unprepared for retirement – with just a quarter having done basic planning while 63% worry often about having enough money to retire.

That’s according to a new AARP New York-Siena College telephone survey of 611 Erie County residents age 36-70, which found key staples are having a serious financial impact on more than half of respondents, including the cost of food (for 52% of Gen Xers and 51% of Boomers), housing (73% Gen X, 61% Boomers), and utilities (69% Gen X, 66% Boomers). Middle class Gen Xers (earning $40,000 to $120,000 annually) also say health insurance (67%) and medical costs (61%) are causing a serious financial impact on them.

Countdown: New York’s Vanishing Middle Class also revealed that 54% of Erie County Gen Xers (born 1965-1980) have not researched Social Security benefits, while 61% of both generations haven’t researched Medicare benefits (including 80% of middle class Gen Xers), 72% haven’t written out a plan, including a budget, for retirement (81% of Gen Xers), 64% have no plan for care if they become sick or disabled (70% of Gen Xers), and 33% haven’t even discussed retirement with their life partner or family.

Meantime, the two generations combined by 46% to 41% think Democratic presidential nominee Hillary Clinton would do a better job protecting Social Security than Republican Donald Trump, with the margin narrower on who would better addressing the retirement needs of seniors (43%-41% for Clinton) – although middle class Gen Xers lean toward Trump on both issues (46%-39% on Social Security and 43%-37% on addressing retirement needs).

This coming year provides a key window for elected leaders at both the state and federal levels to help restore retirement as a real option for New Yorkers.

“Building a financial nest egg is becoming harder, but we can ease the middle class squeeze if our elected leaders restore trust by helping Erie County residents help themselves save and by safeguarding future benefits they’ve earned,” said Beth Finkel, AARP New York State Director.

“Over eight in 10 Erie County Gen Xers and Boomers say it is a problem for New Yorkers to save enough for retirement. They should know; they are living it,” said Don Levy, Director of the Siena College Research Institute. “Less than a quarter of Xers and Boomers are living comfortably.”

AARP NY and Siena unveiled the survey results at Templeton Landing, with Erie County residents who shared their struggles in a dialogue moderated by News 4 Wakeup Anchor Jordan Williams.

Future health care costs present huge concerns. Only one in five is very prepared to pay an estimated $476 per couple in expected monthly out-of-pocket healthcare costs in retirement; 70% of middle class Gen Xers and 75% of middle class Boomers (born 1946-1964) are unprepared to pay more than $50,000 a year in long-term care. Yet a home health aide costs $52,620 annually on average, while the average yearly cost of an Erie County nursing home exceeds $115,000.

Solutions to Help New Yorkers be Prepared for Retirement

Among all survey respondents, 63% worry very often or often about having enough money to maintain their standard of living in retirement. Over half (52%) – including 60% of Gen Xers - said government is doing a poor job making it possible for New Yorkers to save enough for retirement.

Independent AARP research shows over half of all 18- to 64-year-old private sector employees in New York can’t get a traditional workplace retirement savings plans such as a pension or 401(k) – and it’s worse the younger the worker, with over 60% of Millennials lacking access.

Two thirds (68%) of survey respondents support a state-facilitated workplace retirement savings option for private sector workers who lack access to one at their
job. AARP is advocating a professionally-managed, automatic payroll deduction model that allows employees to opt out – since studies show over 90% of employees participate if auto-enrollment is provided.

 

 

 

 

Governor Andrew Cuomo has launched the “NY SMART” (Saving More to Achieve Richer Tomorrows) Commission to study lack of retirement savings and propose solutions. The U.S. Labor Department recently issued a rule allowing states to enact retirement savings plans for workers.

Although a third of respondents expect to rely on Social Security for most of their income in retirement, 59% of Gen Xers said they’re not confident they’ll receive promised benefits – and 78% of both generations call the likelihood Social Security will remain available for future generations a significant problem.

In fact, if federal leaders don’t act, Social Security benefits face a nearly 25% cut in 2034 that could cost recipients as much as $10,000 a year. AARP is conducting a “ Take A Stand” campaign this year to press the presidential candidates to detail their plans for updating Social Security for the 21 ^st Century and to press congressional candidates to commit to working with the new administration.

AARP offers consumers resources to help them plan, including calculators to help determine Social Security benefits, retirement preparedness and health care needs, as well as financial workshops. The survey has a margin of error of plus or minus 4.6%, including 7.2% for the Gen X sample of 300 respondents and 6.4 % for the Boomer sample of 311 respondents.

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AARP is a nonprofit, nonpartisan organization, with a membership of nearly 38 million that helps people turn their goals and dreams into 'Real Possibilities' by changing the way America defines aging. With staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands, AARP works to strengthen communities and promote the issues that matter most to families such as healthcare security, financial security and personal fulfillment. AARP also advocates for individuals in the marketplace by selecting products and services of high quality and value to carry the AARP name.  As a trusted source for news and information, AARP produces the world’s largest circulation magazine, AARP The Magazine and AARP Bulletin. AARP does not endorse candidates for public office or make contributions to political campaigns or candidates. To learn more, visit www.aarp.org or follow @AARP and our CEO @JoAnn_Jenkins on Twitter.