Defined benefit pension income significantly fueled the economy in 2022, according to a new report from the National Institute on Retirement Security (NIRS) entitled “Pensionomics 2025.”

In 2022, retirees received more than $600 billion in public and private pension benefits. NIRS’ research suggests that these benefits contributed a total of $1.5 trillion in economic output, supporting $2.28 for every dollar paid out in pension benefits. Pension income provided a particular boost for the food services, health care, and retail trade sectors.

The analysis also confirms that pensions bolster public finances, providing more than $200 billion in tax revenue. This influx of government income spanned the federal, state, and local levels.

“This investigation dispels the harmful myth that pensions only directly affect retirees,” said Joseph Peters Jr., Secretary-Treasurer of the Alliance. “It’s clear that pension income is vital for economic growth and job creation in communities across the country.”

The public is invited to a January 15 NIRS webinar about the research. You can register for the webinar here.