California Dreaming or California Struggling?...California Dreaming or California Struggling? 2017 findings from the AARP study of California adults ages 36-70 in the workforce: Statewide
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What You Need To KnowSome Asian Americans in California are living the dream,
but many are struggling
• Many say they are at best getting by, they are having difficulty saving for their financialfuture, and they could not withstand a financial shock.
• Housing costs are a concern for homeowners and non-homeowners, and four in tenhave considered leaving California because of the high cost of living.
• Across generations, half are anxious about having enough money saved forretirement. Most Gen Xers and Boomers believe elected officials should supportaffordable housing and workplace retirement savings plans to help Californians.
A quarter of Asian American residents age 36-70 in the workforce are either just getting by
or finding it difficult to get by.
6
27
44
6
20
26
Living comfortably
Doing ok
Finding it difficult to get by
Just getting by
Just getting by/finding it difficult to get by (net)
S T AT EW IDEA S IA N A M ER ICA N S :How M anagingFinancially (% )
Q21: On the whole, which of the following best describes how well you are managing financially these days?Base: Asian CA Residents age 36-70 in the workforce (n=252), Gen X (n=127), Boomer (n=125)
Many Asian Americans are not prepared for a financial shock. Three in ten (30%) could not
afford an emergency expense of $5,000 or more, including 14% who could not afford $1,000or more.
7
15
51
16
5
6
3
Not sure
$5,000+
$1,000-$4,999
$500-$999
$100-$499
Under $100
28%
S T AT EW IDEA S IA N A M ER ICA N S :L argestEm ergency ExpenseCouldP ay (% )
Q10/10b: Based on your current financial situation, what is the largest emergency expense that you could pay right now using cash, or money in yourchecking or savings account?Base: Asian CA Residents age 36-70 in the workforce (n=252), Gen X (n=127), Boomer (n=125)
Not saving enough and not planning for retirement are the financial concerns that Asian
Americans in California most often worry about.
8
S T AT EW IDEA S IA N A M ER ICA N S :O ftenW orry A bout… (% )
Q2: How often do you worry about…?Base: Asian CA Residents age 36-70 in the workforce (n=252), Gen X (n=127), Boomer (n=125)*Base: Asian Employed (n=214), Gen X (n=116), Boomer (n=98)**Base: Asian Looking for work (n=38), Gen X (n=TS), Boomer (n=TS) Caution: Small base size; TS=Base size too small
1
9
11
12
16
19
25
26
Having the chance to work
Losing your job
Having/taking on too much debt
Not being able to pay bills
Having unexpected emergency won't be able to pay for
Not being able to afford costs related to health care
For most, employment uncertainty and housing expenses are major financial obstacles to
saving. Gen Xers also feel the impact of family caregiving on the ability to save.
9
29
36
40
40
42
43
46
47
48
51
54
Paying for your transportation expenses
Having a lot of debt to payoff
Caring for an elderly parent or relative
Not having enough money left over after paying bills
Moving, purchasing a home, or a change in housing
Paying for everyday health care expenses
Paying for your health insurance
A major health need or problem for you/family member
Paying for your children's education
Paying for your housing expenses
Losing a job or taking a big pay cut
S T AT EW IDEA S IA N A M ER ICA N S :M ajorO bstacletoS avingforR etirem ent(% )
Q14: Have any of the following been a major obstacle for you personally when it comes to saving for your retirement years?Base: Asian CA Residents age 36-70 in the workforce (n=252), Gen X (n=127), Boomer (n=125)
Many respondents feel that retirement is a luxury they simply cannot afford. Three-in-ten
(30%) are not too or not at all confident they will be able to retire someday and not work formoney.
10
30%
S T AT EW IDEA S IA N A M ER ICA N S :How ConfidentW illBeA bletoR etireandN otW orkforM oney (% )
Q6: Overall, how confident are you that you will be able to retire at some point and no longer work for money?Base: Asian CA Residents age 36-70 in the workforce (n=252), Gen X (n=127), Boomer (n=125)
Half (50%) are very or somewhat anxious about their financial ability to live comfortably in
retirement.
11
Not anxious at all,21
Not very anxious,26
Somewhatanxious, 40
Very anxious , 10
50%
S T AT EW IDEA S IA N A M ER ICA N S :A nxiety L evelA boutHavingM oney toL iveCom fortably inR etirem ent(% )
Q3: As you think about your finances in the future, how anxious do you feel about having enough money to live comfortably through your retirement years?Base: Asian CA Residents age 36-70 in the workforce (n=252), Gen X (n=127), Boomer (n=125)
Given the concerns and anxiety about retirement preparation, it is not surprising that a majority of Asian
Americans in California support, and agree elected officials should also support, legislation for a privately
managed retirement plan for California.
12
S T AT EW IDEA S IA N A M ER ICA N S :S upport/O pposeL egislationforP rivately M anaged
R etirem entS avingsP lan(% )
S T AT EW IDEA S IA N A M ER ICA N S :CA ElectedO fficialsS hould S upportP lan(% )
Q11: Many Californians, especially those who work for small businesses, do not have a way to save for retirement at work. One way to help more Californianssave would be for the state to establish a privately-managed retirement savings program, similar to a 401k plan, where workers can contribute to a privateretirement account that is professionally managed. Workers can choose whether or not to participate, and the account would be portable from job to job. Theplan would be a public-private partnership and would have low fees for participants. Would you say you support or oppose this proposal?Q13: Do you agree or disagree with the following statement: California elected officials should support creating a retirement savings plan so more workers in thestate of California can save for retirement automatically out of their paycheck.Base: Asian CA Residents age 36-70 in the workforce (n=252), Gen X (n=127), Boomer (n=125)
GenX(age36-50)
Boom er(age51-70)
62 64
GenX(age36-50)
Boom er(age51-70)
63 70
Don’t know/Refuse percentages not shownDon’t know/Refuse percentages not shown
Across the state of California, over half of Asian Americans (54%) are home owners*.
13
<.5
2
14
28
45
54
Something else
Live with friends
Live with family
Rent
Non-homeowner (net)
Own
S T AT EW IDEA S IA N A M ER ICA N S :HousingS ituation(% )
Q17: Switching gears now, do you currently own your own home, rent, live with family, or live with friends?Base: Asian CA Residents age 36-70 in the workforce (n=252), Gen X (n=127), Boomer (n=125)* 2016 Statewide homeownership rate in California for all residents :54.6%. US Census Bureau. https://www.census.gov/housing/hvs/data/rates.html
When asked about housing concerns, affordable housing tops the list for all respondents,
and is significantly pronounced with non-homeowners.
14
S T AT EW IDEA S IA N A M ER ICA N S :Extrem ely/Very ConcernedA boutinCom ingYears(% )
Q18: How concerned are you about your (INSERT ITEM)?Base: Asian CA Residents age 36-70 in the workforce (n=252), Gen X (n=127), Boomer (n=125)*Base: Asian and don’t own a home (n=115), Gen X (n=60), Boomer (n=55)**Base: Asian and own home (n=134), Gen X (n=65), Boomer (n=69)
Ability to find affordable housing inpreferred neighborhood
T O T A L Hom eow nerN on-
hom eow nerGenX
(age36-50)Boom er
(age51-70)
37 23 54 37 36
Ability to live close to work 25 15 38 26 24Ability to pay monthly rent or mortgage
Many Asian Americans in California, particularly Gen Xers, have considered leaving the
state because of the high cost of living.
15
Yes, 41No, 57
S T AT EW IDEA S IA N A M ER ICA N S :HaveConsideredL eavingCaliforniaBecauseofHighCostofL iving(% )
Q19: Have you ever considered leaving California and living somewhere else because of the high cost of living?Base: Asian CA Residents age 36-70 in the workforce (n=252), Gen X (n=127), Boomer (n=125)*http://money.cnn.com/2016/11/04/pf/people-moving-out-california/
GenX(age36-50)
Boom er(age51-70)
Yes 48 30
Interestingly, a recent CNN Money piece found that “For every home buyer coming into the state, thereare three Californians selling and moving elsewhere” because “they can’t afford to live there anymore.”*
With concerns about the high cost of living in California and the affordability of housing costs, seven in
ten (73%) of Asian Americans across the state of California agree that elected officials should support
legislation to increase access to affordable housing.
16
S T AT EW IDEA S IA N A M ER ICA N S :ElectedO fficialsS houldS upportL egislationIncreasingA ccess
toA ffordableHousingforCalifornians(% )
Q20: Do you agree or disagree with the following statement: California elected officials should support legislation increasing access to affordable housingfor more Californians.Base: Asian CA Residents age 36-70 in the workforce (n=252), Gen X (n=127), Boomer (n=125)
Recent progress in California helps to address the ability of residentsto save for their future and get by in our high cost of livingenvironment, but many are still struggling.
• Secure Choice
• Housing Affordability
• Minimum Wage Increase
• Paid Family Leave
AARP looks forward to working with you to continue moving forward.
Less than high school- did notreceive a diploma or GED 10%High school graduateor equivalent 22%Post high school certification,trade school, or diploma 3%
Some college 14%4 year degree(Bachelor's Degree) 30%
Additional Multicultural and Geographicalfindings will soon be available at:www.aarp.org/CADreamingOrStruggling
Engage with us on social media with:#CADreamingOrStruggling
For more information contact:Stacey Moore, AARP California [email protected] (562) 627-5792 orBrittne Nelson, PhD AARP Research [email protected] (202) 434-6307