California voters are feeling increasing anxiety over their retirement, finds a new statewide survey out today.
The research, paid for by the campaign Californians to Protect Retirement and Life Savings and sponsored by nonprofit Building a Better California, reports that Californians are struggling to save as they face high costs of living and taxes. Almost all (94%) of California’s voters believe that the state’s “high cost of living makes it difficult to save for retirement,” and 77% say the same about taxes.
Another 85% agree that both factors create challenges in saving for retirement.
“The survey underscores the anxiety Californians feel over retirement security,” said Dave Metz, partner at FM3 Research, who conducted the research. “Across California regions and demographic groups, voters consistently expressed concern that the rising cost of living and taxes are making it more difficult to save for retirement and remain financially secure in California.”
As economic uncertainty grows, Californians note feeling more financial strain than in years past. Nearly seven in ten voters say it’s harder to save for retirement today than it was five years ago, and 65% lack any confidence in their ability to retire comfortably in the state.
California has grown more expensive over the last years, with the average Californian now needing nearly $2 million in savings to retire, according to the research.
The findings come as lawmakers introduce legislation that could safeguard retirement savings from new state taxes, which have driven voters’ uneasiness about future and short-term savings. Sixty-five percent of Californians say they would have to work longer than planned if the state passed new taxes on retirement and savings accounts, and 80% believe the state should enact laws protecting retirement savings and personal property against taxes.
The Retirement & Personal Savings Protection Act, created by the Californians to Protect Retirement and Life Savings, would protect retirement savings and personal property from new state taxes. The legislation, which Californians will vote on come November, currently has support from several coalition groups across California including the State Building and Construction Trades Council of California, the California Senior Alliance, the California Small Business Association, Disabled American Veterans, Department of California, and the California Multicultural Business Alliance.