According to Inquirer.net, a new study funded by the American Association of Retired Persons (AARP) found that about two-thirds of all Asian-Americans ages 35-69 in New York City do not currently have enough savings for their retirement.
The findings are surprising, considering that Asian-Americans have the highest median household income among all ethnic groups in the United States.
In addition to the two-thirds who don’t have enough to retire in the Big Apple, the study also found that 36% of Asian-American Generation X-ers and Baby Boomers in NYC don’t have any work-sponsored or personal savings whatsoever.
Even more troubling, about 28% of those surveyed say they don’t expect to ever be able to retire. Another AARP survey found that nearly 90% of people age 50 and over want to stay in their homes as long as possible, but this is difficult to do in an expensive city like New York without any savings.
“They have to work harder and long, and still not being able to put something for their retirement,” said Beth Finkel, NYS Director of the AARP. “It definitely shows an uncertain future for New York City and the Asian-Americans at large.”
According to CBS News, more than one-third of working age adults among all ethnic groups do not have any money saved towards retirement, including a shocking 14% of those age 65 and older.
The AARP study goes on to note that those surveyed said that NYC’s high cost of living, education costs, and health care expenses are some of the biggest challenges that impede them from saving.
The retirement group says that the study is reflective of the state’s unwillingness to enforce a retirement saving’s plan for those without a pension or a 401k.
While they don’t expect any changes to be made in the near future, they offered some advice for those struggling to save for retirement from all ethnic backgrounds.
“Bottom line is, anything that you save now has a power of compounding,” Finkel said. “It could build up to something meaningful.”