California Dreaming or California Struggling? · 2020-07-24 · Among African American LA County respondents, just over half (54%) are homeowners*. 13 1 3 5 38 46 54 Something else

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

California Dreaming orCalifornia Struggling?

2017 L A County A fricanA m erican/BlackFindings from the AARP study of CaliforniaAdults Ages 36-70 in the Workforce

#CADreamingOrStruggling

https://doi.org/10.26419/res.00163.008


Fielddates: June22-O ctober6,2016

+ Interview sinEnglish,S panish,Korean,andVietnam ese

L andline/cellphoneR DD study of194 L A County A fricanA m erican/Blacksages36-70 inthew orkforce(from n=2,485respondents)

SURVEY METHODOLOGY

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


• Forsom eL A County A fricanA m erican/Blackssaving,particularlysaving forretirem ent,is

aluxury they sim ply cannotafford.T hreeinten(29% )say they w ouldnotbeabletopay

anem ergencyexpenseof$1,000 orm ore,andsim ilarly fourinten (39% )feelthey are

eitherjustgettingby orfindingitdifficulttogetby financially.

3

• A m ongL A CountyA fricanA m erican/Blacks,broadbasedsupportexistsforlegislationboth

toaddressaccesstoaffordablehousing(78% )andw orkplaceretirem entsavingsplans

(70% ).

• Fornon-hom eow ners,affordablehousingintheirpreferredcom m unity(67% )andallthe

financialexpensesassociatedw ithbecom ingahom eow nerareequally concerning.For

hom eow ners,affordableandconvenienthousingaretophousingconcerns.

• O verhalf(50% )say they haveconsideredleavingthestateofCaliforniaandliving

som ew hereelseduetothehighcostofliving.

• Housingexpenses,em ploym entuncertaintyrelatedtolosingajobortakingapay cut,

andm akingendsm eet financiallyarethetopw orriesandobstaclesthatim pact

retirem entsavings.

EXECUTIVE SUMMARY


What You Need To KnowSome LA County African Americans 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 half haveconsidered leaving California because of the high cost of living.

• Most are anxious about having enough money saved for retirement. At least three infour believe elected officials should support affordable housing and workplaceretirement savings plans to help Californians.

4


KEY FINDINGS


Among LA County African American/Black residents age 36-70 in the workforce, four-in-ten

(39%) say they are currently just getting by or finding it difficult to get by financially. One infour (24%) work a side job to make extra money.

6

33

28

8

31

39

Living comfortably

Doing ok

Finding it difficult to get by

Just getting by

Just getting by/finding it difficult to get by (net)

24%have a sidejob to makeextra money

24%have a sidejob to makeextra money

L A CO U N T Y A FR ICA N A M ER ICA N /BL ACK:How M anagingFinancially (% )

Q21: On the whole, which of the following best describes how well you are managing financially these days?Base: LA COUNTY AFRICAN AMERICAN/BLACK Residents age 36-70 in the workforce (n=194)


Many LA County African American/Blacks are not prepared for a financial shock. About

three in ten (29%) say they do not have the financial resources to afford an emergencyexpense of $1,000 or more, including 14% who could not afford $100 or more.

7

<.5

40

29

5

10

14

Not sure

$5,000+

$1,000-$4,999

$500-$999

$100-$499

Under $100

L A CO U N T Y A FR ICA N A M ER ICA N /BL ACK: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: LA COUNTY AFRICAN AMERICAN/BLACK Residents age 36-70 in the workforce (n=194)

58%29%


Retirement planning, not saving enough, and health care costs are the financial concerns

that LA County African American/Blacks most often worry about.

8

L A CO U N T Y A FR ICA N A M ER ICA N /BL ACK:O ftenW orry A bout… (% )

Q2: How often do you worry about…?Base: LA COUNTY AFRICAN AMERICAN/BLACK Residents age 36-70 in the workforce (n=194) *Base: LA COUNTY AFRICAN AMERICAN/BLACKEmployed (n=172) **Base: LA COUNTY AFRICAN AMERICAN/BLACK Looking for work (n=TS) Caution: Small base size; TS=Base size too small

1

15

17

19

27

29

36

38

Having the chance to work

Having/taking on too much debt

Losing your job

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 saving enough

Not planning enough for retirement


Housing expenses, employment uncertainty, children’s education, and making ends meet

top the list of major financial obstacles to saving.

9

33

37

38

38

42

42

46

47

49

53

60

Paying for everyday health care expenses

Paying for your health insurance

Having a lot of debt to payoff

Caring for an elderly parent or relative

Paying for your transportation expenses

A major health need or problem for you/family member

Not having enough money left over after paying bills

Paying for your children's education

Moving, purchasing a home, or a change in housing

Losing a job or taking a big pay cut

Paying for your housing expenses

L A CO U N T Y A FR ICA N A M ER ICA N /BL ACK: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: LA COUNTY AFRICAN AMERICAN/BLACK Residents age 36-70 in the workforce (n=194)


Extremely confident,17

Very confident , 24

Somewhat confident,28

Not too confident, 8

Not at all confident,23

Many respondents feel that retirement is a luxury they simply cannot afford. Three in ten

(31%) do not have confidence they will be able to retire and not work for money.

10

31%

L A CO U N T Y A FR ICA N A M ER ICA N /BL ACK: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: LA COUNTY AFRICAN AMERICAN/BLACK Residents age 36-70 in the workforce (n=194)

Don’t know/Refuse percentages not shown


Nearly two-in-three LA County African-American/Blacks (63%) are anxious about having the

money necessary to support themselves in retirement.

11

Not anxious at all, 21

Not very anxious, 16

Somewhat anxious, 39

Very anxious , 24

63%

L A CO U N T Y A FR ICA N A M ER ICA N /BL ACK: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: LA COUNTY AFRICAN AMERICAN/BLACK Residents age 36-70 in the workforce (n=194)


Support,70

Neutral, 7

Oppose,22

Agree, 67

Neutral, 3

Disagree,14

Given the concerns about retirement preparation, it is not surprising that a majority of LA County African

American/Blacks support, and agree legislators should support, legislation for a privately managed

retirement plan for California.

12

L A CO U N T Y A FR ICA N A M ER ICA N /BL ACK:S upport/O pposeL egislationforP rivately

M anagedR etirem entS avingsP lan(% )

L A CO U N T Y A FR ICA N A M ER ICA N /BL ACK:CA ElectedO fficialsS houldS 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: LA COUNTY AFRICAN AMERICAN/BLACK Residents age 36-70 in the workforce (n=194)

Don’t know/Refuse percentages not shownDon’t know/Refuse percentages not shown


Among African American LA County respondents, just over half (54%) are homeowners*.

13

1

3

5

38

46

54

Something else

Live with friends

Live with family

Rent

Non-homeowner (net)

Own

L A CO U N T Y A FR ICA N A M ER ICA N /BL ACK:HousingS ituation(% )

Q17: Switching gears now, do you currently own your own home, rent, live with family, or live with friends?Base: LA COUNTY AFRICAN AMERICAN/BLACK Residents age 36-70 in the workforce (n=194)* 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 top the list for homeowners and

non-homeowners. Additionally, non-homeowners are concerned about all aspects ofhousing affordability.

14

L A CO U N T Y A FR ICA N A M ER ICA N /BL ACK:Extrem ely/Very ConcernedA boutinCom ingYears(% )

Q18: How concerned are you about your (INSERT ITEM)?Base: LA COUNTY AFRICAN AMERICAN/BLACK Residents age 36-70 in the workforce (n=194)*Base: LA COUNTY AFRICAN AMERICAN/BLACK and don’t owna home (n=93) *Base: LA COUNTY AFRICAN AMERICAN/BLACK and own home (n=99)**=Base n too small to report findings

Ability to find affordable housing in preferred neighborhood

T O T A L Hom eow ner N on-hom eow ner

48 31 67

Ability to live close to work 35 23 50

Ability to pay monthly rent or mortgage payments34 14 58

Ability to pay utility bills 29 12 50

Ability to afford a down payment to buy a home26 0 56

Ability to qualify for a mortgage to buy a home25 0 54

Ability to pay property taxes6 12 0


Many LA County African American/Blacks are feeling the squeeze of the high cost of living

in California, as half have considered leaving California due to the high cost of living.

15

Yes, 50No, 50

L A CO U N T Y A FR ICA N A M ER ICA N /BL ACK:HaveConsideredL eavingCaliforniaBecauseofHighCostofL iving(% )

Q19: Have you ever considered leaving California and living somewhere else because of the high cost of living?Base: LA COUNTY AFRICAN AMERICAN/BLACK Residents age 36-70 in the workforce (n=194)*http://money.cnn.com/2016/11/04/pf/people-moving-out-california/

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, nearly four in five in ten LA County African American/Black (78%) residents feel thattheir elected officials should support legislation increasing access to affordable housing in

California.

16

L A CO U N T Y A FR ICA N A M ER ICA N /BL ACK:ElectedO fficialsS houldS upportL egislationIncreasingA ccessto

A 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: LA COUNTY AFRICAN AMERICAN/BLACK Residents age 36-70 in the workforce (n=194), Gen X (n=88), Boomer (n=106)

Don’t know/Refuse percentages not shown

Agree78%

Disagree9%

Neutral2%


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 25%High school graduateor equivalent 21%Post high school certification,trade school, or diploma 4%

Some college 18%4 year degree(Bachelor's Degree) 20%

Post graduate study or degree 12%

Refused <0.5%

Em ploym entS tatus

Self-employed full-time 26%

Self-employed part-time 5%

Employed full-time 56%

Employed part-time 7%

Unemployed and looking for work 6%

Incom e

< $10,000 4%$10,000 - $19,999 6%

$20,000 - $29,999 3%$30,000 - $49,999 9%

$50,000 - $74,999 23%$75,000 - $99,999 27%

$100,000 - $149,999 6%$150,000 + 15%Refused 7%R egisteredVoter

Yes 78%No 22%

P oliticalP arty

Democrat 67%Republican 2%Independent 16%Something else/ None 12%Not Sure 1%Refused 2%

Respondent Profile: Socioeconomic & Voting(n=194 Los Angeles County African American/ Black Adults age 36-70in the workforce)


Respondent Profile: Demographics(n=194 Los Angeles County African American/ Black Adults age 36-70 in the workforce)

19

A ge

Gen X(age36-50) 66%Boomer (age51-70) 34%

Gender

Male 56%

Female 44%

M aritalS tatus

Single, never married 27%

Married 48%Not married, living with yourpartner or significant other 3%

Separated or Divorced 19%

Widowed 2%

R ace/Ethnicity

White or Caucasian 1%Native Americanor Alaskan Native --Black 100%Asian --Native Hawaiianor Pacific Islander --

Latino/a --Other <0.5%


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

Documents

California Dreaming or California Struggling? · 2020-07-24 · Among African American LA County respondents, just over half (54%) are homeowners*. 13 1 3 5 38 46 54 Something else