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.
Looking for help with your retirement plan?
If you have a problem with your retirement plan, free help may be available from the U.S. Administration on Aging's network of Pension Counseling and Information Projects. Find help now.
PensionHelp America connects people who need help with their pension, 401(k), and other retirement plans with the pension counseling projects, legal services providers, and government agencies that can help answer their questions. Visit www.pensionhelp.org.
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Retirement USA
Retirement USA is a national initiative that is working for a new retirement system that, along with Social Security, will provide universal, secure, and adequate income for future retirees. Visit the website.
Did You Know?
A 401(k) plan is a retirement savings plan in which the benefit is based on contributions to an individual account and the investment return on those contributions. Typically, employees make contributions to the plan and, in many cases, employers match the employees' contributions. These plans are called defined contribution plans. In most 401(k) and other retirement savings plans, the employee is responsible for choosing among the investments offered by the plan. Other types of retirement savings plans are 403(b) and 457 plans.
