By Philip Newman
More and more New Yorkers cannot afford to retire and a principal reason is that dwindling numbers of people have pensions, according to a new study.
The report “Are New Yorkers Ready For Retirement?” is part of a research initiative by city Comptroller John Liu and the Schwartz Center for Economic Policy at The New School.
The report looks into whether city residents are financially prepared for their senior years.
“The answer increasingly is ‘no,’” the survey said.
The study found that:
• Between 2000 and 2009, the percentage of employees in the city who had access to employer-sponsored retirement plans declined from 48 percent to 40 percent — below the U.S. average of 53 percent in 2009.
• In 2009, only 35 percent of New York City workers were part of a retirement plan offered by employers.
• Overall, two-thirds of city workers — more than 2 million people in 2009 — did not take part in employee-sponsored retirement plans, largely because their employers did not offer one.
• More than one-third of city households in which the head is near retirement age (55-64) will have to subsist almost entirely on Social Security or will not be able to retire due to the fact that they have less than $10,000 in savings.
“It is a significant public policy concern when such a high proportion of the workforce will not have enough money in their retirement years,” Liu said. “This report focuses attention on the need to help workers, both pubic and private sector, properly prepare throughout their working careers for eventual retirement.”
The report found that employers have become less willing or able to sponsor pensions — a trend that exists in most industries and occupations, which affects New Yorkers of nearly all ages and income groups.
“The brewing retirement crisis cuts across racial, ethnic and gender lines,” the study reported.
“The deck is becoming increasing stacked against New Yorkers in their efforts to retire,” said Teresa Ghilarducci, director of the Schwartz Center. “More and more residents now face a choice between retirement into poverty or continuing to work in old age. Without significant policy reforms, the economic reforms tea leaves foretell a decrease in the standard of living for retired New Yorkers.”
Reach contributing writer Philip Newman by e-mail at timesledgernews@cnglocal.com or phone at 718-260-4536.
