Welcome to the latest edition of This Week in Pensions! This is the news you need to know in the fight for a secure retirement. We have gathered the top stories about pensions and retirement security from the previous week.
New NIRS Report
A recent National Institute on Retirement Security (NIRS) report paints a concerning picture for Generation X’s retirement future. Born between 1965 and 1980, Xers have an average retirement savings of just $40,000, leaving many facing a grim financial future. Only about half of Gen Xers have employer-sponsored retirement plans, and most are falling short of their savings targets. Factors like college debt, economic challenges, and the decline of pension plans have contributed to this situation. However, according to U.S Census data, this issue isn’t unique to Gen X. Half of all workers lack retirement savings. This sobering reality reinforces the importance of defined benefit pensions as a vital solution for securing retirees’ financial future. You can read more about the report here.
Public Pensions Offer a Lifeline
Traditional pension plans and job security are becoming increasingly rare in today’s rapidly changing work landscape, leaving many Millennials and Gen Zers unsure about their retirement prospects. However, most jobs in the public sector guarantee a defined benefit pension, providing the utmost financial security in retirement. Public pensions are well positioned as a solid, dependable retirement solution in an economy marked by the lingering pandemic tumult, inflation, worker shortages and debt-related concerns. With many Millennials and Gen Zers are facing significant financial struggles, making it difficult to prioritize contributions to their retirement accounts, there has never been a better time to join the ranks of public employment. Amidst these circumstances, public pensions offer a lifeline, providing essential support for their retirement future. Read here about the many jobs in the public sector that still offer defined-benefit pensions.
Be sure to check back next Friday for the latest in the fight for a secure retirement! For now, sign up for NPPC News Clips to receive daily pension news from across the country directly to your inbox.