Why Pensions Are Important
This fact sheet explains the role pensions play in the overall retirement security of American workers, retirees, and their families.
Pensions are Important to Retirement Security
| Social Security provides only a safety net. | |
| Average yearly Social Security payment: | |
| Annual minimum-wage salary: | |
| Average portion of pay Social Security replaces: | |
| Most retirees have little in personal savings. | |
| Median total savings of older households: | |
| Median income from savings of older Americans: | |
| MEDIAN INCOME OF OLDER AMERICANS: | |
| Retirees with pensions have greater income security. | |
| Median yearly income of retirees with pensions: | |
| Percentage of older Americans with a pension: | |
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PENSIONS ARE IMPORTANT TO THE ECONOMY
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| Pensions are the world’s largest source of capital: | |
| The cost of pensions in tax subsidies: | |
Click on the numbers to read about the sources for these statistics, and to see other figures.
Spotlight
Wondering how much you can contribute to your retirement plan this year? Read our helpful fact sheet to find out. The fact sheet also includes contribution limits for previous years. Read the fact sheet.
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Did You Know?
The Employee Retirement Income Security Act of 1974 is the federal law that regulates most private retirement plans. The government agencies responsible for enforcing ERISA are the Internal Revenue Service, the U.S. Department of Labor, and the Pension Benefit Guaranty Corporation.
