Pension Coverage and Retirement Security

Alicia H. Munnell Laura Quinby

IB#9-26

The brief’s key findings are:

  • Private pensions cover only about half the workforce at any given time.
  • The lack of coverage creates two types of problems:
    • about one third of households never have coverage and end up relying solely on Social Security; and
    • many others move in and out of coverage, resulting in inadequate saving.
  • Expanding coverage is a good goal but only a partial solution, as even those with coverage may need an additional tier of saving.