More than three in 10 people in California don’t have enough savings to get by for three months if they were to lose their job, according to a study released Tuesday.
More than two years after the official end of the recession, 30.9% of Californians have little to no financial cushion, according to the report by the nonprofit Corp. for Enterprise Development. If illiquid assets -- things that can’t quickly or easily be converted into cash, such as a home -- are excluded from the equation, the number rises to an even more troubling 43.1%. The complete study is available here.
“Growing numbers of Americans have almost no savings or other assets to fall back on if they lose their jobs or face a medical crisis,” said Andrea Levere, president of CFED. “Without those savings, few will be able to invest in a more economically secure future, including buying a home, saving for their children’s college educations or building a retirement nest egg.”
The study analyzed the 50 states and the District of Columbia. Overall, California ranks a dismal 39th nationwide in financial security and was at or near the bottom in key yardsticks, such as unemployment and education.