California Dreaming or California Struggling?

Transcription

1 California Dreaming or California Struggling? 2017 LA County Latino/a Findings from the AARP study of California Adults Ages in the Workforce #CADreamingOrStruggling

2 SURVEY METHODOLOGY Landline/cellphone RDD study of 424 LA County Hispanics ages in the workforce (from n=2,485 respondents) : Born (n=211) Baby : Born (n=213) Field dates: June 22-October 6, Interviews in English, Spanish, Korean, and Vietnamese Full methodology and pending multicultural findings will be available at

3 EXECUTIVE SUMMARY For some Los Angeles County, California Latinos/as, saving, particularly saving for retirement, is a luxury they simply cannot afford. One in three (36%) say they would not be able to pay an emergency expense of $1,000 or more, and similarly one in three (34%) feel they are either just getting by or finding it difficult to get by financially. Employment uncertainty, healthcare, and housing expenses are worries and obstacles that impact retirement savings. Latinos/as rate housing expenses as a major obstacle to saving for retirement, while s say the crunch of healthcare and family support expenses impact their ability to save for retirement. Over half (52%) say they have considered leaving the state of California and living somewhere else due to the high cost of living. For non-homeowners, affordable housing is their preferred community (46%) and the financial expenses associated with becoming a homeowner (39%) are top housing concerns. For home owners, affording the costs associated with maintaining home ownership such as paying property taxes (23%) are a top concern. Within California, broad based support exists for legislation both to address access to affordable housing (86%) and workplace retirement savings plans (74%). These initiatives receive strong majority support across generational segments. 3

4 What You Need To Know Some LA County Latinos/as are living the dream, but many (particularly s) are struggling Many say they are at best getting by, they are having difficulty saving for their financial future, and they could not withstand a financial shock. LA County s are more likely to struggle with multiple financial challenges compared to ers. Housing costs are a concern for homeowners and non-homeowners, and half have considered leaving California because of the high cost of living. Across generations, half are anxious about having enough money saved for retirement. At least three in four ers and s believe elected officials should support affordable housing and workplace retirement savings plans to help Californians. 4

5 KEY FINDINGS

6 One-in-three LA County Latino/a residents age in the workforce are just getting by or finding it difficult to get by. LA Latino/a: How Managing Financially (%) Finding it difficult to get by Just getting by (age 36-50) (age 51-70) Just getting by/finding it difficult to get by (net) 22% have a side job to make extra money Doing ok Living comfortably Finding it difficult to get by Just getting by Just getting by/finding it difficult to get by Doing ok Living comfortably Q21: On the whole, which of the following best describes how well you are managing financially these days? Base: LA Latino/a Residents age in the workforce (n=424), (n=211), (n=213) QS8. [ALL] Do you do something to earn extra money that is not your main source of income? 6

7 Many LA County Latinos/as are not prepared for a financial shock. Over one in three (36%) could not afford an emergency expense of $1,000 or less, and over half (55%) could not withstand an emergency expense of $5,000 or less. s are least prepared for big ticket emergency expenses. LA Latinos/as: Largest Emergency Expense Could Pay (%) Under $100 $100-$ $500-$999 36% 55% 50% 7 $1,000-$4, $5,000+ Not sure (age 36-50) (age 51-70) Under $ $100-$ $500-$ $1,000-$4, $5, Not sure % 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 your checking or savings account? Base: LA Latino/a Residents age in the workforce (n=424), (n=211), (n=213) 7

8 Not saving enough and not planning for retirement are the financial concerns that LA Latinos/as most often worry about. (age 36-50) (age 51-70) LA Latinos/as: Often Worry About (%) Not saving enough Not planning enough for retirement 38 Not being able to afford costs related to health care 35 Having unexpected emergency won't be able to pay for Not being able to pay bills Having/taking on too much debt Losing your job Having the chance to work * 23* ** 48** Q2: How often do you worry about? Base: LA Hispanic Residents age in the workforce (n=424), (n=211), (n=213) *Base: LA Hispanic Employed (n=361), (n=180), (n=181) **Base: LA Hispanic Looking for work (n=63), (n=31 ), (n=32 ) Caution: Small base size 8

9 For ers, having money left over after paying bills and paying for housing changes are major financial obstacles to saving, while s say the crunch of financial support to parents and children as well as healthcare expenses are top obstacles to saving. (age 36-50) (age 51-70) LA Latinos/as: Major Obstacle to Saving (%) Not having enough money left over after paying bills A major health need or problem for you/family member Losing a job or taking a big pay cut Paying for your housing expenses Moving, purchasing a home, or a change in housing 52 Paying for everyday health care expenses Paying for your children's education Having a lot of debt to payoff Paying for your transportation expenses Paying for your health insurance Caring for an elderly parent or relative Q14: Have any of the following been a major obstacle for you personally when it comes to saving for your retirement years? Base: LA Latino/a Residents age in the workforce (n=424), (n=211), (n=213) 9

10 Many respondents feel that retirement is a luxury they simple cannot afford. Regardless of age, nearly half of LA Latinos/as (46%) are not too or not at all confident they will be able to retire and not have to work for money. LA Latinos/as: Confident Will Be Able to Retire and Not Work for Money (%) Not at all confident, 20 Not too confident, 26 Somewhat confident, 26 46% (age 36-50) (age 51-70) Not at all/ Not too confident Somewhat confident Very confident Very confident, 19 Extremely confident, 8 Extremely confident Don t know/refuse percentages not shown Q6: Overall, how confident are you that you will be able to retire at some point and no longer work for money? Base: LA Latino/a Residents age in the workforce (n=424), (n=211), (n=213) 10

11 Again regardless of generation, half (51%) are anxious about their ability to live comfortably in retirement. LA Latinos/as: Anxiety Level About Having Money to Live Comfortably in Retirement (%) (age 36-50) (age 51-70) Very anxious, 19 Somewhat anxious, 32 Not very anxious, 31 Not anxious at all, 17 51% Very/ Somewhat anxious Not very anxious Not anxious at all Don t know/refuse percentages not shown 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: LA Latino/a Residents age in the workforce (n=424), (n=211), (n=213) 11

12 Given the concerns and anxiety about retirement preparation, it is not surprising that a majority of LA County Latinos/as support, and agree elected officials should also support, legislation for a privately managed retirement plan for California. ers are especially supportive. Support/Oppose Legislation for Privately Managed Retirement Savings Plan (%) Oppose, 14 Support, 74 (age 36-50) (age 51-70) Don t know/refuse percentages not shown Disagree, 15 Agree, Neutral, 9 Agree/Disagree Elected Officials Should Support Savings Plan (%) 66 (age 36-50) (age 51-70) Neutral, Don t know/refuse percentages not shown 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 Californians save would be for the state to establish a privately-managed retirement savings program, similar to a 401k plan, where workers can contribute to a private retirement account that is professionally managed. Workers can choose whether or not to participate, and the account would be portable from job to job. The plan 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 the state of California can save for retirement automatically out of their paycheck. Base: LA Latino/a Residents age in the workforce (n=424), (n=211), (n=213) 12

13 Among LA County Latino/a respondents, non-homeowners outnumber homeowners* by nearly two-to-one but housing situation varies by age. ers are more likely to be single renters (41%), while s are more likely to live with family (37%). LA Latinos/as: Housing Situation (%) Own (age 36-50) (age 51-70) 33 Non-homeowner (net) 64 Rent 37 Live with family 24 Live with friends 4 Something else <.5 Own Nonhomeowner (net) Rent Live with family Live with friends 4 4 Something else -- 1 Q17: Switching gears now, do you currently own your own home, rent, live with family, or live with friends? Base: LA Latino/a Residents age in the workforce (n=424), (n=211), (n=213) * 2016 Statewide homeownership rate in California for all residents :54.6%. US Census Bureau. 13

14 When asked about housing concerns, affordable housing tops the list for all respondents, and is significantly pronounced with non-homeowners. ers-many who are renters, are concerned about being able to pay rent and buy a home, while s-many who live with family, are concerned about affording household utility costs. Extremely/Very Concerned About in Coming Years (%) TOTAL Homeowner Nonhomeowner Ability to find affordable housing in preferred neighborhood Ability to pay monthly rent or mortgage payments Ability to pay utility bills Ability to afford a down payment to buy a home * *** Ability to live close to work Ability to qualify for a mortgage to buy a home * *** *** *** Ability to pay property taxes (age 36-50) (age 51-70) Q18: How concerned are you about your (INSERT ITEM)? Base: LA Latino/a Residents age in the workforce (n=424), (n=211), (n=213) *Base: LA Latino/a and don t own a home (n=265), (n=137), (n=128) **Base: LA Latino/a and own home (n=156), (n=71), (n=85)***=base n too small to report findings. 14

15 Many LA County Latinos/as are feeling the squeeze of the high cost of living in California, as over half (52%) have considered leaving the state entirely and living somewhere else. Have Considered Leaving California Because of High Cost of Living (%) No, 48 Yes, 52 Yes (age 36-50) (age 51-70) Interestingly, a recent CNN Money piece found that For every home buyer coming into the state, there are three Californians selling and moving elsewhere because they can t afford to live there anymore. * Q19: Have you ever considered leaving California and living somewhere else because of the high cost of living? Base: LA Latino/a Residents age in the workforce (n=424), (n=211), (n=213) * 15

16 With concerns about the high cost of living in California and the affordability of housing costs, a super majority of nearly nine in ten (86%) LA County Latinos agree their California elected officials should support legislation increasing access to affordable housing for more Californians. Elected Officials Should Support Legislation Increasing Access to Affordable Housing for Californians (%) Agree, 86 Disagree, 8 (age 36-50) (age 51-70) Neutral, 3 Don t know/refuse percentages not shown Q20: Do you agree or disagree with the following statement: California elected officials should support legislation increasing access to affordable housing for more Californians. Base: LA Hispanic Residents age in the workforce (n=424), (n=211), (n=213) 16

17 Moving Forward Recent progress in California helps to address the ability of residents to save for their future and get by in our high cost of living environment, 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. 17

18 Respondent Profile: Socioeconomic & Voting (n=424 Los Angeles County Latino/a Adults age in the workforce) Education Employment Status Income Less than high school- did not receive a diploma or GED High school graduate or equivalent Post high school certification, trade school, or diploma 51% Self-employed full-time 18% 15% Self-employed part-time 3% $10,000 - $19,999 1% Employed full-time 60% $20,000 - $29,999 Some college 18% Employed part-time 4 year degree (Bachelor's Degree) 8% Post graduate study or degree 3% Refused 4% No 51% 48% 9% $30,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $149,999 Political Party Democrat Registered Voter Yes Unemployed and looking for work 11% < $10,000 Republican Independent Something else/ None Not Sure Refused $150, % 10% 18% 17% 6% 4% Refused 3% 7% 9% 20% 15% 21% 9% 3% 13% 18

19 Respondent Profile: Demographics (n=424 Los Angeles County Latino/a Adults age in the workforce) Gender Male Female 58% 42% (age36-50) (age 51-70) Marital Status Race/Ethnicity Age 71% 29% White or Caucasian Native American or Alaskan Native Black Asian Native Hawaiian or Pacific Islander Latino/a Other 34% 2% 1% <.5% 2% 100% 54% Single, never married Married Not married, living with your partner or significant other Separated or Divorced Widowed 15% 53% 9% 16% 2% 19

20 More About This Report Additional Multicultural and Geographical findings will soon be available at: Engage with us on social media with: #CADreamingOrStruggling For more information contact: Stacey Moore, AARP California (562) or Brittne Nelson, PhD AARP Research (202)