Though some believe retirees made more from their employee benefits in the 1970s, a new study suggests otherwise.
According to a report released by Investment Company Institute, retirees from various income groups are making more today from employer-sponsored plans than they were 35 years ago, which was right around the time retirement plan regulations were first put into place.
For example, in 2011, 33 percent of retirees obtained income from private-sector retirement plans. This contrasts sharply with the 21 percent who received money from this source in 1975.
In addition, the amount of money for people with private-sector pension income was $4,700 in 1975, whereas today, these levels are closer to $6,300 when adjusted for inflation.
Peter Brady, senior economist at ICI and co-author of the report, said legislators and business owners would be wise to take these numbers under advisement when assessing employee benefit plan administration.
"As policymakers consider retirement savings policies, it is important that they understand that private-sector pension income has tended to increase over time rather than decrease," said Brady. "The share of retirees receiving private-sector pension income increased by more than 50 percent between 1975 and 1991, and has remained fairly stable since."
