CalSavers (formerly Secure Choice)

Fast Facts on Retirement Insecurity

Are People Ready for Retirement?

  • Each generation is projected to retire poorer than the last: 55% of young workers age 25-44 have projected retirement incomes below 200% of the federal poverty level (a commonly used threshold for economic hardship), compared to 39% of workers age 45-54 and 33% of workers age 55-64.
  • More than half of today's households will not have enough retirement income to maintain their pre-retirement standard of living.
  • Among households age 55 and older, nearly one-third have no retirement savings.

Access to Workplace Retirement Savings Plans

  • 7.5 million California workers (about 57%) of private-sector workers in California work for an employer that does not offer a retirement plan. Of those, over 2/3 (almost 5 million) are people of color, of which nearly 3/4 (over 3.5 million) are Latino.
  • Access to workplace retirement plans makes individuals 15 times more likely to save for retirement among individuals with incomes between $30k and $50k.
  • Among households age 55 and older, nearly one-third have no retirement savings.

CalSavers Benefits

  • A typical 25-year-old California worker who participates in CalSavers would be expected to save enough retirement savings to generate a $7,060 in annual retirement income.
  • Almost 40% of CalSavers participants could delay claiming Social Security by a year or more, increasing their monthly benefit.

People of Color and Retirement

  • Almost half (47%) of California workers eligible for CalSavers are Latino.
  • Latino seniors, the fastest growing segment of the senior population, are almost three times as likely to be poor with incomes below 200% federal poverty level (FPL) as white seniors (44% vs. 23%). Asian and Black seniors are also significantly more likely to live in poverty than white seniors (32% and 37% vs. 23%).
  • In California, 68% (3.5 million) of Latino workers, 50.5% (936,882) of Asian workers and 297,497 African American workers ages 18-64 work for private sector employers who do not offer a retirement plan.

Women and Retirement

  • 58% (3.4 million) of female workers in California between the ages of 18-64 are not covered by workplace retirement savings plans.
  • Women are 80% more likely than men to live in poverty in retirement.

Young People and Retirement

  • 58% of workers age 25-44 have projected retirement incomes below 200% of the federal poverty level (a commonly used threshold for economic hardship).
  • Almost 65% (3.5 million) of California workers between the ages of 18-34 are not covered by a workplace retirement plan.
  • Younger workers tend to change jobs more frequently than older workers, as the median tenure of workers ages 25 to 34 is about three years, while median tenure of workers ages 55 to 64 is a little more than 10.4 years.

Social Security

  • The average monthly Social Security retirement benefit is $1,369 as of June 2017.
  • At least 22% of retirees rely on Social Security for 90% of their income.
  • At least 62% of retirees rely on it for more than half of their income.

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