Baby Boomers in the Big Apple are finding it harder to save for retirement, as 37% of New York City’s Baby Boomers are not confident that they’ll ever be able to retire, according to AARP research.
According to the New York City Comptroller’s office, one-third of New Yorkers approaching retirement age have less than US$10,000 in retirement savings.
Meanwhile, according to a recent survey of sales tax, median home and condo value, median monthly rent, median income, unemployment rates, and gas prices, New York City ranked as the fourth most difficult city in the United States for saving money.
A high cost of living and high city sales tax make saving for retirement in New York City difficult for those not working on Wall Street. Citywide, the median annual income is about US$50,000, but a minimum-wage worker will make only about US$18,000. The median monthly rent in New York City is just shy of US$1,200 per month.
AARP New York has labeled those struggling to save for retirement as the “working worried” and cites the fact that only half of workers in the city have access to retirement-savings options at work. Workers are 15 times more likely to save for retirement if their employer provides a retirement-savings plan.
The AARP says it aims to set up a retirement savings vehicle on the city level and plans to work with New York City policymakers to achieve it.