Uh-Oh, New Yorkers Rank Second to Last in Retirement Savings

Saving money these days feels impossible to younger generations who feel stuck in a hamster wheel where all they do is work and have nothing to show for it because the world is not as economically stable for them as it was for their parents.

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If you're a New Yorker who just doesn't have enough savings to retire, you're in good company because Dollar Geek says the average person in New York is 70 percent behind where they need to be.

According to a recent study, New Yorkers are the second furthest behind on their retirement savings, with only residents of Hawaii having saved less.

The personal finance website WalletHub study analyzed retirement readiness across all 50 states and the District of Columbia based on access to employer-sponsored retirement plans, cost of living, and tax-friendliness.

The study found that New York ranked 50th out of 51, with a score of just 38.58 out of 100 when it comes to retirement savings. This is due in part to the high cost of living in New York State, which can make it difficult for residents to save money for retirement.

What’s more is that the study found that only 44 percent of private sector workers in New York have access to employer-sponsored retirement plans, which is lower than the national average of 49 percent.

The study also found that New York State has one of the highest tax burdens in the United States, which can make it difficult for residents to save for retirement. However, the state does offer some tax incentives for retirement savings, such as a deduction for contributions to a traditional IRA or a Roth IRA.

Experts say it's crucial for New Yorkers to start saving for retirement as early as possible, even if only setting aside a small amount each month. Some resources are available to help New Yorkers save for retirement, such as the New York State Deferred Compensation Plan and the New York State Retirement System.

KEEP READING: Here are the best places to retire in America

LOOK: Here's where people in every state are moving to most

Stacker analyzed the Census Bureau's 2019 American Community Survey data to determine the three most popular destinations for people moving out of each state.

Source: Uh-Oh, New Yorkers Rank Second to Last in Retirement Savings