A crisis is quietly growing in New Mexico. In 2018, researchers at the University of New Mexico released a report showing nearly 80% of New Mexicans working in the private sector have less than $10,000 saved for retirement. About two-thirds have nothing saved.
When these New Mexicans are no longer able to continue working, they will depend entirely on Social Security benefits. Unfortunately, the average benefit is only about $13,900 a year, while the cost of food, housing and health care averages more than twice that: $28,000 a year, according to the U.S. Bureau of Labor Statistics.
The biggest reason why New Mexicans are not saving for retirement is that they do not have access to retirement savings plans through their jobs. In fact, New Mexico has the lowest rate in the nation of workers with access to job-based retirement savings.
This matters because research shows that people are 15 times more likely to save for retirement when they are able to do so through their jobs, with the savings automatically deducted from their paychecks.