Crain's New York Make Retirement Savings Plans Accessible to All New Yorkers by Ben Kallos, I. Daneek Miller, Beth Finkle
At 73 years old, Kitty Ruderman enjoys being retired. She volunteers with a number of nonprofits, including AARP, advocating on behalf of folks like herself. She’s grateful to have no major health issues draining her energy or her bank account. But with her rent higher than her Social Security income, she’s worried. If her cost of living doesn’t go up – if she doesn’t get sick, if her rent doesn’t increase, if she has no new expenses – she estimates that she can maintain her current lifestyle for another 10 years. After that, she doesn’t know.
Middle- and low-income New Yorkers increasingly struggle to pay the bills and even seniors like Kitty, who worked for decades saving for retirement, are among those hit hardest by the City’s affordability crisis.
The most recent data show that more than one third of New Yorkers between the ages of 50 and 64 have less than $10,000 saved for retirement. Most of these folks are disproportionately people of color. White 50-plus New Yorkers’ retirement incomes are almost double that of black, Asian and Latino New Yorkers, and the majority of 50-plus New Yorkers of color are likely to retire with incomes near the poverty threshold.