California Dreaming or California Struggling? 2017 S tatew idea siana m ericanfindings from the AARP study of California Adults Ages 36-70 in the Workforce #CADreamingOrStruggling https://doi.org/10.26419/res.00163.004 AARP RESEARCH AARP.ORG/CADREAMINGORSTRUGGLING 2017 AARP. ALL RIGHTS RESERVED
SURVEY METHODOLOGY L andline/cellphoner DD study of252 S tatew idea siana m ericans ages36-70 inthew orkforce(from n=2, 485respondents) :Born1965-1980 (n=127) Baby :Born1946-1964 (n=125) Field dates: June22-O ctober6,2016 + Interview sinenglish,s panish,korean,and Vietnam ese Full methodology and pending multicultural findings will be available at www.aarp.org/cadreamingorstruggling
EXECUTIVE SUMMARY Forsom ea siana m ericansincalifornia,saving,particularly saving forretirem ent,isa luxury they sim ply cannotafford.o neinseven(14% )say they w ouldnotbeabletopay an em ergency expenseof$1, 000 orm ore,andoneinfour(26% )feelthey areeitherjust gettingby orfindingitdifficulttogetby financially. Em ploym entuncertainty andhousingexpensesaretopw orriesandobstaclesthatim pact retirem entsavings.a siana m erican ersalsoratecaringforelderly parentsand relativesasa m ajor obstacletosavingforretirem ent. T w oinfive(41% )say they haveconsideredleavingthestateofcaliforniaandliving som ew hereelseduetothehighcostofliving. Fornon-hom eow nersandhom eow ners,affordablehousingintheirpreferredcom m unity isthetophousingconcern.hom eow nersarealsoconcernedw ithaffordingthecosts associatedw ithm aintaininghom eow nershipsuchasm akingm ortgagepaym ents(17% ) andpayingproperty taxes(16% ). W ithincalifornia,broadbasedsupportexistsforlegislationbothtoaddressaccessto affordablehousing(73% )andw orkplaceretirem entsavingsplans(63% ).T heseinitiatives receivestrongm ajority supportacrossgenerationalsegm ents. 3
What You Need To Know Some 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 financial future, and they could not withstand a financial shock. Housing costs are a concern for homeowners and non-homeowners, and four in ten have considered leaving California because of the high cost of living. Across generations, half are anxious about having enough money saved for retirement. Most Gen Xers and Boomers believe elected officials should support affordable housing and workplace retirement savings plans to help Californians. 4
KEY FINDINGS
A quarter of Asian American residents age 36-70 in the workforce are either just getting by or finding it difficult to get by. S T AT EW IDEA S IA N A M ER ICA N S :How M anagingfinancially (% ) Just getting by/finding it difficult to get by (net) 26 Just getting by Finding it difficult to get by 12% have a side job to make extra money 20 Justgetting by/findingit difficulttoget by (net) 23 29 Just getting by 17 25 Finding it difficult to get by 7 4 Doing ok 45 42 Living comfortably 29 26 6 Doing ok Living comfortably (age36- (age5150) 70) 44 27 Q21: On the whole, which of the following best describes how well you are managing financially these days? 6
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 $1,000 or more. S T AT EW IDEA S IA N A M ER ICA N S : L argestem ergency ExpenseCouldP ay (% ) Under $100 $100-$499 $500-$999 $1,000-$4,999 3 14% 6 30% Under $100 4 2 $100-$499 4 10 32% 28% 5 5 4 $1,000$4,999 15 16 $5,000+ 57 42 Not sure 13 19 $500-$999 16 $5,000+ Not sure (age36-50) (age51-70) 51 15 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? 7
Not saving enough and not planning for retirement are the financial concerns that Asian Americans in California most often worry about. S T AT EW IDEA S IA N A M ER ICA N S : O ftenw orry A bout (% ) Not saving enough 26 Not planning enough for retirement 25 Not being able to afford costs related to health care 19 Having unexpected emergency won't be able to pay for 16 Not being able to pay bills 12 Having/taking on too much debt 11 Losing your job Having the chance to work (age36-50) (age51-70) 9 1 27 24 25 24 17 21 17 16 11 15 10 12 11 12 Q2: How often do you worry about? *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 7 9* 5 8
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. S T AT EW IDEA S IA N A M ER ICA N S : M ajoro bstacletos avingforr etirem ent(% ) Losing a job or taking a big pay cut 54 Paying for your housing expenses 51 Paying for your children's education 48 A major health need or problem for you/family member 47 Paying for your health insurance 46 Paying for everyday health care expenses 43 Moving, purchasing a home, or a change in housing 42 Not having enough money left over after paying bills 40 Caring for an elderly parent or relative 40 Having a lot of debt to payoff Paying for your transportation expenses (age36-50)(age51-70) 36 29 58 48 54 46 53 41 48 45 47 45 46 39 47 35 40 40 46 31 38 33 28 30 Q14: Have any of the following been a major obstacle for you personally when it comes to saving for your retirement years? 9
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 for money. S T AT EW IDEA S IA N A M ER ICA N S : How ConfidentW illbea bletor etireandn otw orkform oney (% ) Not at all confident, 12 Not too confident, 18 Somewhat confident, 35 Very confident, 19 Extremely confident, 10 30% (age36-50) (age51-70) Not at all/ Not too confident 29 31 Somewhat confident 38 31 Very confident 22 15 6 14 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? 10
Half (50%) are very or somewhat anxious about their financial ability to live comfortably in retirement. S T AT EW IDEA S IA N A M ER ICA N S :A nxiety L evela bouthavingm oney to L ivecom fortably inr etirem ent(% ) (age36-50) (age51-70) Very anxious, 10 Somewhat anxious, 40 Not very anxious, 26 50% Very / Somewhat anxious 47 55 Not very anxious 28 21 Not anxious at all 20 23 Not anxious at all, 21 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? 11
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. S T AT EW IDEA S IA N A M ER ICA N S : S upport/o ppose L egislationforp rivately M anaged R etirem ents avingsp lan(% ) Oppose, 12 Support, 63 (age36-50)(age51-70) 62 S T AT EW IDEA S IA N A M ER ICA N S : CA ElectedO fficialss hould S upportp lan(% ) Disagree, 11 Agree, 66 (age36-50)(age51-70) 64 63 Neutral, 18 Neutral, 15 Don t know/refuse percentages not shown 70 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. 12
Across the state of California, over half of Asian Americans (54%) are home owners*. S T AT EW IDEA S IA N A M ER ICA N S : HousingS ituation(% ) Own (age36-50) (age51-70) 54 Non-homeowner (net) 45 Rent 28 Live with family 14 Live with friends 2 Something else <.5 53 56 45 44 Rent 32 24 Live with family 11 20 Live with friends 3 -- Something else -- <.5 Own N onhom eow ner (net) Q17: Switching gears now, do you currently own your own home, rent, live with family, or live with friends? * 2016 Statewide homeownership rate in California for all residents :54.6%. US Census Bureau. https://www.census.gov/housing/hvs/data/rates.html 13
When asked about housing concerns, affordable housing tops the list for all respondents, and is significantly pronounced with non-homeowners. S T AT EW IDEA S IA N A M ER ICA N S : Extrem ely/very Concerned A boutincom ingyears(% ) N on hom eow ner (age36-50) (age51-70) T O TAL Hom eow ner 37 25 23 15 54 38 37 26 36 24 23 17 32 23 24 Ability to pay utility bills 17 14 21 12 23 Ability to afford a down payment to buy a home 16 0 37 17* 15* Ability to qualify for a mortgage to buy a home 12 0 28 12* 13* 9 16 0 8 10 Ability to find affordable housing in preferred neighborhood Ability to live close to work Ability to pay monthly rent or mortgage payments Ability to pay property taxes Q18: How concerned are you about your (INSERT ITEM)? *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) 14
Many Asian Americans in California, particularly Gen Xers, have considered leaving the state because of the high cost of living. S T AT EW IDEA S IA N A M ER ICA N S : HaveConsideredL eavingcaliforniabecauseofhighcostofl iving(% ) (age36-50)(age51-70) No, 57 Yes, 41 Yes 48 30 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? *http://money.cnn.com/2016/11/04/pf/people-moving-out-california/ 15
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. S T AT EW IDEA S IA N A M ER ICA N S : Elected O fficialss hould S upportl egislationincreasinga ccess toa ffordablehousingforcalifornians(% ) (age36-50) (age51-70) Agree, 73 Disagree, 12 Agree 70 76 Neutral, 11 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. 16
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
Respondent Profile: Socioeconomic & Voting (n=252 Statewide Asian American Adults age 36-70 in the workforce) Education Em ploym ents tatus Incom e Less than high school- did not receive a diploma or GED High school graduate or equivalent Post high school certification, trade school, or diploma 10% Self-employed full-time 14% 22% Self-employed part-time 7% 3% Employed full-time Some college 14% Employed part-time 4 year degree (Bachelor's Degree) 30% Unemployed and looking for work Post graduate study or degree 21% Refused <0.5% Yes No 67% 32% 9% 13% $10,000 - $19,999 $20,000 - $29,999 $30,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $149,999 P oliticalp arty Democrat R egistered Voter 58% < $10,000 Republican Independent Something else/ None Not Sure Refused $150,000 + 31% 15% 28% 18% 6% 1% Refused/ Not Sure 1% 4% 3% 8% 10% 14% 11% 23% 27% 18
Respondent Profile: Demographics (n=252 Statewide Asian American Adults age 36-70 in the workforce) Gender Male Female R ace/ethnicity A ge 55% 45% Gen X (age36-50) Boomer (age 51-70) 60% 40% Native American or Alaskan Native Black Asian M aritals tatus 9% Married 71% Not married, living with your partner 1% or significant other Separated or Divorced 11% Widowed 6% Single, never married White or Caucasian Native Hawaiian or Pacific Islander Latino/a Other A sianheritage ---100% <.5% -<.5% Chinese Vietnamese Asian Indian Japanese Filipino Korean Asian Pacific Islander Some other Asian heritage 44% 17% 18% 8% 7% 5% <.5% 5% 19
More About This Report Additional Multicultural and Geographical findings 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 smoore@aarp.org (562) 627-5792 or Brittne Nelson, PhD AARP Research bnelson@aarp.org (202) 434-6307 20