The Financial Challenges Facing Older Adults in Rochester, NY

A recent report by the Center for an Urban Future has shed light on the alarming financial struggles faced by older adults across New York State. Over the past decade, poverty among older New Yorkers has surged by nearly 50%, with nearly half of them reporting no retirement income. As living costs rise and retirement savings remain inadequate, many older adults are being forced to work well past retirement age just to make ends meet.

Rising Poverty Among Older Adults

The report highlights a troubling increase in the number of older adults—those aged 65 and above—living in poverty. While poverty rates for younger New Yorkers have declined, older adults have seen a dramatic increase, with over 420,000 seniors now living below the poverty line. This trend is especially concerning in cities like Rochester, Buffalo, and Syracuse, where poverty rates among older adults have risen sharply.

The Retirement Income Gap

One of the most startling findings is that 49% of older adults in New York reported having no retirement income in 2022. This issue is even more pronounced in areas like the Bronx, where 64% of older residents lack retirement savings. Social Security benefits, a crucial safety net, are also not reaching everyone—over 300,000 older New Yorkers are not accessing these benefits, leaving many without a stable source of income.

More Seniors Are Working—Out of Necessity

With financial stability becoming increasingly difficult, more seniors are staying in the workforce. The number of older adults working has grown by over 50% in the past decade, with many taking on self-employment to stay financially afloat. While some may choose to work to remain active, many are doing so out of necessity due to rising costs and limited savings.

A Disproportionate Impact on Older Adults of Color

The financial burden is not evenly distributed. The report finds that older adults of color are disproportionately affected, with Hispanic, Black, and Asian seniors facing the highest rates of poverty and lack of retirement income. In some areas, over 60% of Hispanic and Asian older adults report having no retirement savings at all.

Steps Towards a Solution

The report outlines several policy recommendations to address this growing crisis, including:

• Expanding affordable senior housing options
• Lowering healthcare costs, including prescription drug prices
• Increasing access to Social Security and retirement savings programs
• Providing tax credits for family caregivers
• Supporting job opportunities and entrepreneurship programs for older adults

As New York’s older population continues to grow, it is critical that policymakers take action to ensure financial security for all older adults. Addressing these issues now can help older New Yorkers live with dignity, stability, and peace of mind in their later years.

Here are some facts specific to Rochester, NY:

Rochester

• The city of Rochester experienced a 26.9 percent increase in its older adult population over the last decade, growing from 22,754 in 2012 to 28,880 in 2022. Today, older adults represent 13.8 percent of the city’s population, up from 10.8 percent in 2012.
• The number of older adults in poverty rose 64.9 percent, increasing from 2,944 in 2012 to 4,855 in 2022. Fully 16.8 percent of older adults live in poverty today, up from 12.9 percent a decade ago.
• Hispanic older adults have the highest poverty rate (42.4 percent), followed by Asian older adults (33 percent), Black older adults (16 percent), and white older adults (11.9 percent).
• Immigrant older adults have a poverty rate of 15.2 percent, compared to U.S.-born older adults who have a poverty rate of 17 percent.
• Labor force participation among older adults increased 12.7 percent, rising from 3,601 in 2012 to 4,059 in 2022. Fully 14.1 percent of older adults are in the workforce today.
• 16 percent of Black older adults are in the labor force, as are 15.3 percent of white older adults and 12.3 percent of Hispanic older adults.
• Among working older adults, 16.1 percent are self-employed, up from 13.3 percent in 2012.
• Among adults over 70, over half did not report any retirement income (52.3 percent), and 8.7 percent did not report any social security income. Fully 12.8 percent receive Supplemental Security Income, more than the statewide rate.