In a new Forbes column NIRS Executive Director Dan Doonan writes that pension income is so much more than just income for retirees – it’s also a reliable economic engine that impacts virtually every community across the U.S.
When pension income lands in a retiree’s bank account, that money doesn’t just sit in an account. That income is spent on day-to-day living expenses. Retirees use their pension income on essentials like groceries, housing, medicine, utilities, clothing, transportation, and entertainment. And this spending has sizable economic footprint across the U.S, not only generating income for businesses and workers, but also generating tax revenue.
A detailed economic analysis finds that retiree spending powered by U.S. private and public sector defined benefit pensions was substantial – whopping $1.5 trillion in total economic output, supporting 7.1 million jobs across the nation across various sectors in 2022.