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 55-641.
Among households age 55 and older, nearly one-third have no retirement savings or pension assets2.
The median retirement assets for all working households ages 25-64 is just $3,0003.
As of 2020, over one-fourth (25%) of non-retired adults did not have any form of retirement savings4.
Access to Workplace Retirement Savings Plans
7.5 million private-sector workers in California (about 57%) lack access to a workplace retirement plan (includes both full- and part-time workers)5.
Access to workplace retirement plans makes individuals with incomes between $30k and $50k fifteen times more likely to save for retirement; the likelihood rises to twenty times when a workplace retirement plan has an auto-enrollment feature6.
Benefits of CalSavers
Almost 40% of CalSavers participants could delay claiming Social Security by a year or more, increasing their monthly benefit7.
Young workers earning the bottom 50% of wages in their age cohort could increase their retirement incomes by roughly half as a result of the state’s new minimum wage law and participation in CalSavers8.
Retirement Insecurity by Race and Ethnicity
In California, 68% (3.5 million) of Latino workers, 50.5% (936,882) of Asian workers and over half of African American workers ages 18-64 lack access to a workplace retirement plan9.
The median retirement account balance of all working Latinos age 21-64 is $010.
About 75% of Black households ages 25-64 have less than $10,000 in retirement savings11.
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 plans12.
Women are 80% more likely than men to live in poverty in retirement13.
Young People and Retirement
Two-thirds (66.2%) of working Millennials have nothing saved for retirement14.
Over half of workers age 25-44 have projected retirement incomes below 200% of the federal poverty level (a commonly used threshold for serious economic hardship)15.
Almost 65% (3.5 million) of California workers between the ages of 18-34 are not covered by a workplace retirement plan16.
