2017 Retirement Readiness Assessment

Retirement Readiness Assessment • Biennial survey – conducted since 2008. • Evaluates the overall financial status of

CalSTRS members.

Summary Findings • Use of myCalSTRS, CalSTRS.com and

Pension2.com for retirement planning increased. • Paying off student loan debt continues to rise as

an obstacle to saving for retirement. • Borrowing from retirement plans while working in a

CalSTRS-covered position decreased.

Men and Women

Retirement Savings

0

25

50

75

Num

ber o

f Res

pond

ents

Retirement Savings (n = 168)

Household Retirement Savings - Single Females (Active)

Median, $32,000 Mean, $94,000

0

25

50

75

Num

ber o

f Res

pond

ents

Retirement Savings (n = 168)

Household Retirement Savings - Single Females (Active)

0

25

50

75

Num

ber o

f Res

pond

ents

Retirement Savings (n = 92)

Household Retirement Savings - Single Males (Active)

Median, $33,000 Mean, $94,000

0

25

50

75

Num

ber o

f Res

pond

ents

Retirement Savings (n = 92)

Household Retirement Savings - Single Males (Active)

Median, $33,000 Mean, $94,000

0

25

50

75

Num

ber o

f Res

pond

ents

Retirement Savings (n = 92)

Household Retirement Savings - Single Males (Active)

Median, $32,000 Mean, $94,000

0

25

50

75

Num

ber o

f Res

pond

ents

Retirement Savings (n = 260)

Household Retirement Savings – All Singles (Active)

0

25

50

75

100

Num

ber o

f Res

pond

ents

Retirement Savings (n = 556)

Household Retirement Savings - Married Females (Active)

Median, $103,000 Mean, $221,000

0

25

50

75

100

Num

ber o

f Res

pond

ents

Retirement Savings (n = 556)

Household Retirement Savings - Married Females (Active)

0

25

50

75

100

Num

ber o

f Res

pond

ents

Retirement Savings (n = 370)

Household Retirement Savings - Married Males (Active)

Median, $107,000 Mean, $195,000

0

25

50

75

100

Num

ber o

f Res

pond

ents

Retirement Savings (n = 370)

Household Retirement Savings - Married Males (Active)

Median, $107,000 Mean, $195,000

0

25

50

75

100

Num

ber o

f Res

pond

ents

Retirement Savings (n = 370)

Household Retirement Savings - Married Males (Active)

Mean, $221,000

0

25

50

75

100

Num

ber o

f Res

pond

ents

Retirement Savings (n = 926)

Household Retirement Savings – All Married (Active)

Retirement Confidence

0

50

100

150

200

250

0Not At All Confident

1Somewhat Confident

2Confident

3Very Confident

Num

ber o

f Res

pond

ents

Confident Will Have Enough Money to

Live Comfortably Throughout Retirement (Active)

Single Female (n = 441) Single Male (n = 157)

0

50

100

150

200

250

0Not At All Confident

1Somewhat Confident

2Confident

3Very Confident

Num

ber o

f Res

pond

ents

Confident Will Have Enough Money to

Live Comfortably Throughout Retirement (Active)

Single Female (n = 441) Single Male (n = 157)

Single Female Mean 0.92

Single Male Mean 1.35

0

100

200

300

400

500

600

700

0Not At All Confident

1Somewhat Confident

2Confident

3Very Confident

Num

ber o

f Res

pond

ents

Confident Will Have Enough Money to

Live Comfortably Throughout Retirement (Active)

Married Female (n = 1,255) Married Male (n = 633)

0

100

200

300

400

500

600

700

0Not At All Confident

1Somewhat Confident

2Confident

3Very Confident

Num

ber o

f Res

pond

ents

Confident Will Have Enough Money to

Live Comfortably Throughout Retirement (Active)

Married Female (n = 1,255) Married Male (n = 633)

Married Female Mean 1.15

Married Male Mean 1.47

0

150

300

450

600

750

900

0Not At All Confident

1Somewhat Confident

2Confident

3Very Confident

Num

ber o

f Res

pond

ents

Confident Will Have Enough Money to

Live Comfortably Throughout Retirement (Active)

Female (n = 2,047) Male (n = 891)

0

150

300

450

600

750

900

0Not At All Confident

1Somewhat Confident

2Confident

3Very Confident

Num

ber o

f Res

pond

ents

Confident Will Have Enough Money to

Live Comfortably Throughout Retirement (Active)

Female (n = 2,047) Male (n = 891)

Female Mean 1.06

Male Mean 1.43

0

100

200

300

400

500

600

0Not At All Confident

1Somewhat Confident

2Confident

3Very Confident

Num

ber o

f Res

pond

ents

Confident Will Have Enough Money to

Live Comfortably Throughout Retirement (Retired)

Female (n = 1,290) Male (n = 771)

0

100

200

300

400

500

600

0Not At All Confident

1Somewhat Confident

2Confident

3Very Confident

Num

ber o

f Res

pond

ents

Confident Will Have Enough Money to

Live Comfortably Throughout Retirement (Retired)

Female (n = 1,290) Male (n = 771)

Female Mean 1.48

Male Mean 1.73

Retirement Income Adequacy

Minimum Living Expense Line, $2,240

Poverty Line, $959

0

250

500

750

1,000N

umbe

r of P

re-1

999

Ret

irees

Monthly Benefit

Member-Only Benefit Pre-1999 Retirees - 2016

Minimum Living Expense Line, $2,240

Poverty Line, $959

0

250

500

750

1,000N

umbe

r of P

re-1

999

Ret

irees

Monthly Benefit

Member-Only Benefit Pre-1999 Retirees - 2016

Minimum Living Expense Line, $2,240

Poverty Line, $959

0

250

500

750

1,000N

umbe

r of P

re-1

999

Ret

irees

Monthly Benefit

Member-Only Benefit Pre-1999 Retirees - 2016

Minimum Living Expense Line, $2,240

Poverty Line, $959

0

250

500

750

1,000N

umbe

r of P

re-1

999

Ret

irees

Monthly Benefit

Member-Only Benefit Pre-1999 Retirees - 2016

Minimum Living Expense Line, $2,240

Poverty Line, $959

0

250

500

750

1,000N

umbe

r of P

re-1

999

Ret

irees

Monthly Benefit

Member-Only Benefit Pre-1999 Retirees - 2016

Minimum Living Expense Line, $2,240

Poverty Line, $959

0

250

500

750

1,000N

umbe

r of P

re-1

999

Ret

irees

Monthly Benefit

Member-Only Benefit Pre-1999 Retirees - 2016

Minimum Living Expense Line, $2,240

Poverty Line, $959

0

250

500

750

1,000N

umbe

r of P

re-1

999

Ret

irees

Monthly Benefit

Member-Only Benefit Pre-1999 Retirees - 2016

Minimum Living Expense Line, $2,240

Poverty Line, $959

0

250

500

750

1,000N

umbe

r of P

re-1

999

Ret

irees

Monthly Benefit

Member-Only Benefit Pre-1999 Retirees - 2016

Minimum Living Expense Line, $2,240

Poverty Line, $959

0

250

500

750

1,000N

umbe

r of P

re-1

999

Ret

irees

Monthly Benefit

Member-Only Benefit Pre-1999 Retirees - 2016

Minimum Living Expense Line, $2,240

Poverty Line, $959

0

250

500

750

1,000N

umbe

r of P

re-1

999

Ret

irees

Monthly Benefit

Member-Only Benefit Pre-1999 Retirees - 2016

Minimum Living Expense Line, $2,240

Poverty Line, $959

0

250

500

750

1,000N

umbe

r of P

re-1

999

Ret

irees

Monthly Benefit

Member-Only Benefit Pre-1999 Retirees - 2016

Minimum Living Expense Line, $2,240

0

250

500

750

1,000N

umbe

r of P

re-1

999

Ret

irees

Monthly Benefit

Member-Only Benefit Pre-1999 Retirees - 2016

36%

2017 Minimum Living Expense Line (1 Adult),

$27,483

0

20

40

60

80

100

Num

ber o

f Res

pond

ents

Annual Income (n = 768)

Annual Income – Retired (Singe/Divorced/Widowed)

2017 Minimum Living Expense Line (1 Adult),

$27,483

0

20

40

60

80

100

Num

ber o

f Res

pond

ents

Annual Income (n = 768)

Annual Income – Retired (Singe/Divorced/Widowed)

11%

2017 Minimum Living Expense Line (2 Adults),

$43,252

0

50

100

150

Num

ber o

f Res

pond

ents

Annual Income (n = 1,171)

Annual Income - Retired (Married)

2017 Minimum Living Expense Line (2 Adults),

$43,252

0

50

100

150

Num

ber o

f Res

pond

ents

Annual Income (n = 1,171)

Annual Income - Retired (Married)

7%

0

100

200

300

400

500

600

1Not At All Sufficient

2Somewhat Sufficient

3Mostly Sufficient

4Completely Sufficient

Num

ber o

f Res

pond

ents

Retirement Income Sufficiently Ensures Financial

Security in Retirement Female (n = 1,283) Male (n = 772)

0

100

200

300

400

500

600

1Not At All Sufficient

2Somewhat Sufficient

3Mostly Sufficient

4Completely Sufficient

Num

ber o

f Res

pond

ents

Retirement Income Sufficiently Ensures Financial

Security in Retirement Female (n = 1,283) Male (n = 772)

Female Mean 2.62

Male Mean 2.86

Longevity

22%

78%

Works for Pay in Retirement

Yes No

51% 49%

Does Regularly Scheduled

Volunteer Work Yes No

22%

17%

5% 3%

24%

29%

Reasons for Working in Retirement

Extra income for travel,luxuries or entertainmentTo stay mentally active

To maintain socialconnectionsTo stay physically active

Necessary living expenses

Other

2017 Minimum Living Expense Line (1 Adult),

$27,483

0

10

20

30

40

Num

ber o

f Res

pond

ents

Annual Income (n = 128)

Annual Income – Pre-1999 Retirees (Single/Divorced/Widowed)

11%

2017 Minimum Living Expense Line (1 Adult),

$27,483

0

20

40

60

80

100

Num

ber o

f Res

pond

ents

Annual Income (n = 640)

Annual Income – Post-1998 Retirees (Single/Divorced/Widowed)

11%

2017 Minimum Living Expense Line (1 Adult),

$27,483

0

20

40

60

80

100

Num

ber o

f Res

pond

ents

Annual Income (n = 768)

Annual Income – Retired (Singe/Divorced/Widowed)

11%

2017 Minimum Living Expense Line (2 Adults),

$43,252

0

5

10

15

20

Num

ber o

f Res

pond

ents

Annual Income (n = 108)

Annual Income – Pre-1999 Retirees (Married)

11%

2017 Minimum Living Expense Line (2 Adults),

$43,252

0

50

100

150

Num

ber o

f Res

pond

ents

Annual Income (n = 1,063)

Annual Income – Post-1998 Retirees (Married)

7%

2017 Minimum Living Expense Line (2 Adults),

$43,252

0

50

100

150

Num

ber o

f Res

pond

ents

Annual Income (n = 1,171)

Annual Income - Retired (Married)

7%