Three new surveys cited find rising housing, healthcare, and everyday costs are pushing workers to delay, reduce, or abandon retirement savings altogether

Prop 42 would protect retirement and personal savings from any new state taxes

SACRAMENTO, CA — Three new surveys confirm what millions of Californians are already experiencing: rising housing, healthcare, and everyday costs are forcing workers to delay retirement or give up saving altogether. Prop 42, the Retirement and Personal Savings Protection Act, would protect retirement funds, pensions, and personal savings from state taxes– protecting Californians who worked their whole lives counting on retirement to be there when they needed it.

Bloomberg reported on the surveys released last week. Nearly half of working adults surveyed by NFP said they’re deprioritizing retirement savings because of housing, car payments, healthcare, and other expenses, and roughly seventy percent of those respondents said they’re now off track on their retirement goals.

A Schroders survey found that more than a quarter of workers have cut back their workplace retirement contributions or borrowed from their accounts to cover loans and emergency costs, with a third of workers who have an employer-sponsored plan now carrying more debt than retirement savings.

A third survey from Thrivent found that almost two-thirds of non-retirees are focused on their current finances rather than retirement planning, and about a third feel they’re falling behind their peers because of the high cost of living.

All three of these surveys point to what the Yes on Prop 42 coalition has said all along: Californians are under real financial pressure, and protecting the retirement savings they’ve already built is one of the most direct ways to give them room to breathe. Prop 42 would ensure retirement funds, pensions, and personal savings aren’t hit with new state taxes, so that a lifetime of saving isn’t eroded right when workers need it most.

“For California’s seniors, retirement security represents decades of hard work and planning,” said Jennifer Yoder, Board Member, California Senior Alliance. “That security should not be subject to new taxes simply because it has become a convenient target. Seniors living on fixed incomes have little flexibility to absorb additional costs, particularly on savings they have already set aside. Prop 42 ensures that what Californians have rightfully earned remains protected.”

An April survey of more than 800 Californians found that the rising cost of living and taxes are fundamentally reshaping how residents think about retirement, with the overwhelming majority saying it’s become harder to save and plan for their later years. Statewide, 85% agree that California’s high cost of living and taxes make it difficult to save for retirement, and 80% agree that stronger protections are needed against new taxes on retirement accounts and personal savings.

At the same time, Californians worry about efforts to enact new taxes on retirement or personal savings accounts. Given that there have been several recent legislative proposals to tax retirement accounts, three in five voters (59%) believe it’s likely that California politicians will eventually try to enact new taxes on their retirement or personal savings accounts too.