Sylvia A. Allegretto, PhD Co-director: Center on Wage & - PowerPoint PPT Presentation

Sylvia A. Allegretto, PhD Co-director: Center on Wage & Employment Dynamics Institute for Research on Labor & Employment University of California, Berkeley

Social Security Personal Savings Pensions Allegretto 2015

Other 16% Social Security 25% Rental 8% Supplemental Security 0% Dividends 10% Retirement Funds 41% Source: Current Population Survey, Annual Social and Economic Supplement (CPS ASES), 2012-14 Allegretto 2015

Social Security Personal Savings Allegretto 2015

Rental Other 2% 5% Dividend 2% Retirement Funds 15% Social Security Supplemental 74% Security 2% Allegretto 2015 Source: CPS ASES, 2012-14

Rental & Dividend Other 5% Retirement 1% Funds 3% Supplemental Security 13% Social Security 79% Allegretto 2015 Source: Current Population Survey, Annual Social and Economic Supplement, 2012-14

Social Security & Supplemental Security (92%) Allegretto 2015

 Retirees in California ▪ 57% are women ▪ Of retirees in the bottom 25% — 70% are women  Of those in the Top 25% ▪ 80% are men — even as they are just 43% of retirees. ▪ 81% are white  Minority retirees ▪ Blacks & Hispanics more likely to be in the bottom 25% ▪ Poverty rates are elevated for minorities & women Allegretto 2015

18% 15.7% 15.5% 16% 13.4% 14% 11.9% 12% 10.3% 10% 8.2% 7.4% 8% 6% 4% 2% 0% ALL White Hispanic Black Asian Male Female Allegretto 2015 Source: U.S. Census Bureau, American Community Survey, 2011-2013

40% 35% 35% 1979 to 2014 30% 2007 to 2014 25% 20% 17% 15% 10% 6% 4% 5% 0% -1% -1% -5% -3% -4% -4% -5% -6% -6% -6% -7% -10% -7% -8% -10% -10% -15% 10th 20th 30th 40th Median 60th 70th 80th 90th Source: SA Allegretto’s analysis of Current Population Survey data, 1979 -2014 Allegretto 2015

Allegretto 2015

Additional + layer of secure retirement income Allegretto 2015

60% Access 51.4% Participation 50% 44.7% 42.5% 40% 37.0% 30% 20% 10% 0% United States California Allegretto 2015 Source: Analysis of 2012-2014 CPS ASEC. Private sector workers 25-64.

80% 74.6% United States 68.2% 70% 67.5% 62.2% California 60% 55.4% 51.6% 50.7% 50% 40.7% 40% 35.6% 30% 27.6% 18.3% 20% 15.0% 10% 0% 1 to 10 11 to 49 50 to 99 101 to 499 501 to 999 1000+ Source: Analysis of 2012-2014 CPS ASEC. Private sector workers 25-64. Allegretto 2015

60% Access 52.3% 50.9% Participation 48.4% 50% 44.5% 44.2% 40% 37.5% 33.1% 30% 25.7% 20% 10% 0% White Asian Black Latino Allegretto 2015 Source: Analysis of 2012-2014 CPS ASEC. Private sector workers 25-64.

1000+ 21% Under 11 30% 500 to 999 4% 100 to 499 12% 11 to 49 50 to 99 25% 9% Source: CPS ASEC Allegretto 2015

Other/mult. 2% Asian 14% White 35% Black Latino 4% 45% Source: CPS ASEC Allegretto 2015

 6.4 million workers age 25-64 in the private sector lack access to a job-based retirement plan. ▪ 7.6 million including self-employed workers  Large majority of small business and low wage workers lack access.  Profile of the underserved: ▪ 2/3 workers of color ▪ 2/3 small business employees ▪ $25,000 median full-time earnings Allegretto 2015

 44 44 th th among g sta tates tes in NIRS Financial Security Scorecard private vate sector ctor retire tirement ment plan particip ticipat ation ion  45 45 th th in DC accou count nt balance ance amo mong ng working king particip ticipan ants ts – $23 23,3 ,381 81 in n 2012 2012 Source: Weller & Rhee, 2013 Allegretto 2015

60% 55% 47% 50% 39% 40% 33% 30% 20% 10% 0% 25-44 45-54 55-64 All Source: Projections using SIPP 2008 in Allegretto, Rhee, Saad-Lesser, & Schmidt, 2011

Thank you Sylvia A. Allegretto, PhD allegretto@berkeley.edu 510 643-7080