Pension benefits reduce poverty, decrease hardship in retirement

From the National Institute on Retirement Security (NIRS):

A recent study by the National Institute on Retirement Security found that defined benefit pension income plays a critical role in reducing the risk of poverty and hardship for older Americans. The report, The Pension Factor, found that pensions reduce – and in some cases eliminate – the greater risk of poverty and public assistance dependence that women and minority populations otherwise would face.

Key findings from the report indicate that pension receipt among older American households in 2006 was associated with:

  • 1.72 million fewer poor households and 2.97 million fewer near-poor households;
  • 560,000 fewer households experiencing a food hardship;
  • 380,000 fewer households experiencing a shelter hardship;
  • 320,000 fewer households experiencing a health care hardship;
  • 1.35 million fewer households receiving means-tested public assistance;
  • $7.3 billion in public assistance expenditures savings, representing about 8.5 percent of aggregate public assistance dollars received by all American households for the same benefit programs.

Read the full report The Pension Factor: Assessing the Role of DB Plans in Reducing Elder Hardships »

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Posted in A Fair Deal at Work, Retirement Security

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