Income Generated by Retirement Plans On the Rise

In "A Look at Private-Sector Retirement Plan Income After ERISA, 2012", ICI found that:

"Retirement income generated by private-sector retirement plans has become more prevalent—not less prevalent—since the passage of ERISA in 1974, and this is true across all income groups. In 2012, 32 percent of retirees received private-sector retirement plan income—either directly or through a spouse—compared with 21 percent in 1975. Among retirees with private-sector retirement plan income, the median received per person in 2012 was approximately $6,300, compared with about $4,800 in 1975 (in 2012 dollars). Further, the survey data used to analyze retiree income do not fully capture distributions from DC pension plans and IRAs, and thus, likely underestimate the increase in retirement plan income since ERISA."

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