Monroe Gen Xers, Boomers Struggle With Basics, Unprepared for Retirement: AARP/Siena Survey

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

Monroe County Generation Xers and Baby Boomers are struggling to afford basic necessities such as housing and utilities and are massively unprepared for retirement, with just a quarter having done basic planning while 62% worry often about having enough money to retire.

That’s according to a new AARP New York-Siena College telephone survey of 603 Monroe County residents age 36-70, which found key staples are having a serious financial impact, including the cost of housing (for 69% of Gen Xers and 61% of Boomers – and 74% of middle class Gen Xers, those earning $40,000 to $120,000 annually) - utilities (59% Gen X, 62% Boomer) health insurance (58% Gen X, 61% Boomer), medical costs (52% Gen X, 59% Boomer), and even food (47% Gen X, 45% Boomer).

Countdown: New York’s Vanishing Middle Class also revealed that 52% of Monroe County Gen Xers (born 1965-1980) have not researched Social Security benefits, while 62% of both generations haven’t researched Medicare benefits (including 80% of Gen Xers), 68% haven’t written out a plan, including a budget, for retirement (78% of Gen Xers), 61% have no plan for care if they become sick or disabled (68% of Gen Xers), and three in 10 haven’t even discussed retirement with their life partner or family. AARP unveiled the survey results at The Strathallan, with Monroe County residents sharing their struggles in an open dialogue.

More think government has done a good job preparing for the retirement of Boomers (44%) than for Gen Xers (25%), and 41% of middle class Gen Xers say they plan to leave New York in retirement.

Combined the two generations think Democratic presidential nominee Hillary Clinton would do a better job protecting Social Security than Republican Donald Trump by 49% to 32%, while Clinton leads 48%-29% on who would do better addressing the retirement needs of seniors (but only by 42%-40% among middle class Gen Xers).

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 Monroe County residents help themselves save and by safeguarding future benefits they’ve earned,” said Beth Finkel, AARP New York State Director.

“Nearly nine in 10 Monroe 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. “Only a quarter of Xers and Boomers are living comfortably.”

Future health care costs present huge concerns. Fewer than one in five is very prepared to pay an estimated $476 per couple in expected monthly out-of-pocket healthcare costs in retirement; 75% of middle class Gen Xers and 76% 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 a Monroe County nursing home exceeds $130,000.

Solutions to Help New Yorkers be Prepared for Retirement

Among all survey respondents, 62% worry very often or often about having enough money to maintain their standard of living in retirement. Over half (51%) 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 plan such as a pension or 401(k) – and it’s worse the younger the worker, with over 60% of Millennials lacking access.

Three quarters 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 32% of respondents in the Monroe County survey expect to rely on Social Security for most of their income in retirement, 55% of Gen Xers said they’re not confident they’ll receive promised benefits – and 76% 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 4.8%, including 7.3% for the Gen X sample of 301 respondents and 7.1 % for the Boomer sample of 302 respondents.

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