Closing the gap: Public pensions’ key role in retirement security for low-wage workers

A new research report demonstrates the impact that pensions have in reducing poverty and near-poverty across race, sex and educational attainment.

The report, “Closing the Gap: The Role of Public Pensions in Reducing Retirement Inequality,” which is from the National Institute on Retirement Security and the UC Berkeley Labor Center, shows that pension income is distributed more equitably by race and gender than private financial assets. Overall, the report found that pension benefits currently are in payment to 23.2 million adults aged 55 and older in the U.S., representing $5.6 trillion in household wealth. That boosts middle-class family net worth by 36% and narrows racial and gender wealth gaps among older families, according to the report.

“Pensions remain a critical component of middle-class retirement security and really act as a buffer against growing wealth inequality,” said Dan Doonan, executive director for the National Institute on Retirement Security, in a recent webinar.