New York City unveils new plan to help workers save for retirement
NEW YORK (WABC) -- New York City Mayor Bill de Blasio has unveiled a new retirement plan for people who work for private companies.
The mayor rallied at City Hall Monday for a retirement savings plan that President Trump and Republicans have tried to stop.
In New York City, more than 1 million people have no retirement plan other than Social Security. Most who do have a plan have only saved about $12,000.
So many are like Onza Lynch, a commercial carter who hauls tons of cardboard every day.
"I've worked every day since I was a teenager, now I'm 49 years old and I'm speaking to you today as someone who wishes they could've started saving for a retirement plan 30 years ago," said Lynch.
The city's plan would cost companies nothing, but they would be forced to participate.
3 percent would be deducted from every worker's paycheck. Workers can opt out if they want.
The initial $3 million cost will be paid by the city.
"We have people all over this city who are living that fear, living that anxiety; they're retired and they don't know if they'll make it or they're working and they don't know if they'll ever be able to retire," said the mayor. "This is not what we signed up for. This is not the American dream!"
So far states including California and Oregon have retirement plans.
New York would become the first city to offer a savings plan for those with none.
"I know I can't do this job forever because my body won't allow it and I worry who is going to take care of me?," said Lynch. "I don't want to work until I die. And I don't want to be a burden for my kids. And I want to be able to take care of myself."
The mayor and City Council hope this bill will pass by the end of the year. So next year all private companies in New York City with 10 or more employees would have to either offer their own retirement plan or use the city's.
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