california dreaming or california struggling?...california dreaming or california struggling? 2017...

AARP RESEARCH | AARP.ORG/CADREAMINGORSTRUGGLING | © 2017 AARP. ALL RIGHTS RESERVED

California Dreaming orCalifornia Struggling?

2017 S tatew ideA sianA m ericanFindingsfrom the AARP study of California AdultsAges 36-70 in the Workforce

#CADreamingOrStruggling

https://doi.org/10.26419/res.00163.004


GenX :Born1965-1980 (n=127)Baby Boom er:Born1946-1964 (n=125)

Fielddates: June22-O ctober6,2016

+ Interview sinEnglish,S panish,Korean,andVietnam ese

L andline/cellphoneR DD study of252 S tatew ideA sianA m ericansages36-70 inthew orkforce(from n=2,485respondents)

SURVEY METHODOLOGY

Full methodology and pending multicultural findings will be available at www.aarp.org/CADreamingorStruggling


• Forsom eA sianA m ericansinCalifornia,saving,particularlysaving forretirem ent,isa

luxury theysim ply cannotafford.O neinseven(14% )say they w ouldnotbeabletopay an

em ergencyexpenseof$1,000 orm ore,andoneinfour(26% )feeltheyareeitherjust

gettingby orfindingitdifficulttogetby financially.

3

• W ithinCalifornia,broadbasedsupportexistsforlegislationbothtoaddressaccessto

affordablehousing(73% )andw orkplaceretirem entsavingsplans(63% ).T heseinitiatives

receivestrongm ajority supportacrossgenerationalsegm ents.

• Fornon-hom eow nersandhom eow ners,affordablehousingintheirpreferredcom m unity

isthetophousingconcern.Hom eow nersarealsoconcernedw ithaffordingthecosts

associatedw ithm aintaininghom eow nershipsuchasm akingm ortgagepaym ents(17% )

andpayingpropertytaxes(16% ).

• T w oinfive(41% )say they haveconsideredleavingthestateofCaliforniaandliving

som ew hereelseduetothehighcostofliving.

• Em ploym entuncertaintyandhousingexpensesaretopw orriesandobstaclesthatim pact

retirem entsavings.A sianA m ericanGenX ersalsoratecaringforelderlyparentsand

relativesasa“ m ajor” obstacletosavingforretirem ent.

EXECUTIVE SUMMARY


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.

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.

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)

GenX(age36-

50)

Boom er(age51-

70)Justgetting

by/findingitdifficulttoget

by (net)

23 29

Just getting by 17 25

Finding itdifficult to get

by7 4

Doing ok 45 42

Livingcomfortably

29 26

12%have a sidejob to makeextra money

12%have a sidejob to makeextra money


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)

30%14%

GenX(age36-50)

Boom er(age51-70)

Under $100 4 2

$100-$499 4 10

$500-$999 5 4

$1,000-$4,999 15 16

$5,000+ 57 42

Not sure 13 19

32%


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

Not planning enough for retirement

Not saving enough

GenX(age36-50)

Boom er(age51-70)

27 24

25 24

17 21

17 16

11 15

10 12

11 79*

12 5


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)

GenX(age36-50)

Boom er(age51-70)

58 48

54 46

53 41

48 45

47 45

46 39

47 35

40 40

46 31

38 33

28 30


Extremely confident,10

Very confident , 19

Somewhat confident,35

Not too confident, 18

Not at all confident,12

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)

GenX(age36-50)

Boom er(age51-70)

Not at all/ Not tooconfident

29 31

Somewhatconfident

38 31

Very confident 22 15

Extremelyconfident

6 14

Don’t know/Refuse percentages not shown


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)

GenX(age36-50)

Boom er(age51-70)

Very / Somewhatanxious

47 55

Not very anxious 28 21

Not anxious at all 20 23



Support,63

Neutral, 15

Oppose,12

Agree, 66

Neutral, 18

Disagree,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.

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

GenX(age36-50)

Boom er(age51-70)

Own 53 56

N on-hom eow ner

(net)45 44

Rent 32 24

Live with family 11 20

Live withfriends

3 --

Something else -- <.5


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

payments23 17 32 23 24

Ability to pay utility bills 17 14 21 12 23

Ability to afford a down payment to buy ahome

16 0 37 17* 15*

Ability to qualify for a mortgage to buy ahome

12 0 28 12* 13*

Ability to pay property taxes9 16 0 8 10


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)

GenX(age36-50)

Boom er(age51-70)

Agree 70 76


Agree, 73

Neutral, 11

Disagree,12


Moving Forward

17

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.

AARP RESEARCH | AARP.ORG/CADREAMINGORSTRUGGLING | © 2017 AARP. ALL RIGHTS RESERVED 18

Education

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%

Post graduate study or degree 21%

Refused <0.5%

Em ploym entS tatus

Self-employed full-time 14%

Self-employed part-time 7%

Employed full-time 58%

Employed part-time 9%

Unemployed and looking for work 13%

Incom e

< $10,000 1%$10,000 - $19,999 4%

$20,000 - $29,999 3%$30,000 - $49,999 8%

$50,000 - $74,999 10%$75,000 - $99,999 14%

$100,000 - $149,999 11%$150,000 + 23%

Refused/ Not Sure 27%R egisteredVoter

Yes 67%No 32%

P oliticalP arty

Democrat 31%Republican 15%Independent 28%Something else/ None 18%Not Sure 6%Refused 1%

Respondent Profile: Socioeconomic & Voting(n=252 Statewide Asian American Adults age 36-70 in the workforce)


Respondent Profile: Demographics(n=252 Statewide Asian American Adults age 36-70 in theworkforce)

19

A ge

Gen X(age36-50) 60%Boomer (age51-70) 40%

Gender

Male 55%

Female 45%

M aritalS tatus

Single, never married 9%

Married 71%Not married, living with your partneror significant other 1%

Separated or Divorced 11%

Widowed 6%

R ace/Ethnicity

White or Caucasian --Native Americanor Alaskan Native --Black --Asian 100%Native Hawaiianor Pacific Islander <.5%

Latino/a --Other <.5%

A sianHeritage

Chinese 44%Vietnamese 17%Asian Indian 18%Japanese 8%Filipino 7%Korean 5%Asian Pacific Islander <.5%Some other Asian heritage 5%


More About This Report

20

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

california dreaming or california struggling?...california dreaming or california struggling? 2017...

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