At NPPC, we consistently highlight the value of defined-benefit pensions for public employees and everyone lucky enough to have one. But what about the millions who don’t have access to a secure retirement plan? Every October, during National Retirement Security Month—which we call National Retirement Insecurity Month—we spotlight the unsettling reality faced by those with inadequate retirement plans or, worse, no retirement plan at all.
Since its inception in 2006 by the National Association of Government Defined Contribution Administrators, National Retirement Security Month has sought to raise awareness about the importance of secure retirement planning. Unfortunately, the term “retirement security” remains a distant dream for too many Americans, and this month provides an opportunity to discuss how we can change that.
Here’s what you can do to make a difference this month:
Recognize the Growing Retirement Crisis
Pensions have long provided retirees with a reliable source of income, ensuring they didn’t outlive their savings or face the volatility of market downturns. Yet, since the passage of the Revenue Act of 1978, which introduced the 401(k) plan, the retirement landscape has changed dramatically. Corporations jumped on the opportunity to shift from defined-benefit pensions to 401(k)-style plans—plans that were never meant to serve as a primary source of retirement income.
Today, 57% of Americans have no retirement savings, and the median 401(k) balance is a meager $27,376. This amount falls tragically short of covering basic retirement expenses like healthcare, housing, and groceries. As a result, a staggering 70% of Americans now recognize we are in the midst of a retirement security crisis.
Advocate for Public Pensions
While public employees are among the few remaining groups with access to defined-benefit pensions, special interest groups often attack these critical safety nets. The good news? You can help defend retirement security by becoming a pension advocate.
Becoming an advocate doesn’t require a formal application—caring about the future of retirement for public employees is all it takes. Start by researching your state legislature, which plays a key role in decisions around pension policies and funding.
As the general election nears, knowing who’s representing you and where they stand is especially important. Your informed choices can make a difference when pension-related bills come up for a vote. You can also support pensions by sharing NPPC’s posts on social media and engaging in meaningful conversations with friends, family, and colleagues about the importance of retirement security.
Combatting Misinformation and Rising Support for Pensions
While misinformation about pensions remains a threat, this year has seen increasing support for unions and pensions, with even some corporations reconsidering defined-benefit pensions as part of their benefits package. In a notable moment, Vice Presidential Candidate Tim Walz recently voiced his wish for “all Americans to have a defined-benefit pension plan” in response to critics of his pension benefits earned after years of public service.
Still, it’s important to stay vigilant. If pension opponents resurface, here’s how you can push back with facts:
- Public pensions aren’t draining state budgets. In FY 2020, less than 5.5% of state and local government spending was allocated to public pensions.
- Taxpayers don’t primarily fund pension funds. Investment earnings, not taxpayer contributions, account for 60% of all public pension revenue since 1991.
- Pensions benefit the broader economy. In 2020 alone, pension benefits generated $157.7 billion in federal, state, and local tax revenue, proving they are a valuable economic engine.
By sharing this information and your personal stories about the value of pensions, you can help challenge false narratives and provide lawmakers and the public with an accurate, fact-based understanding of the importance of pensions.
Join Us in the Fight for Retirement Security
This October, join NPPC in the fight for a future where every American can retire with dignity and security. Advocacy, education, and sharing the truth about pensions can help protect the retirement of millions of public employees—and together, we can build a more secure retirement landscape for everyone.
Want to stay on top of pension legislation in your state? Subscribe to NPPC News Clips for daily updates on pension-related news, which are sent straight to your inbox. And if you’re ready to get involved, sign up for emails from NPPC to discover how you can support our mission more actively.
P.S. Ready to help right now? Well, sharing is caring! Share this post with someone who cares about their retirement future! Also, throughout October, stay tuned to our social media channels—Instagram and Facebook—for impactful content, including personal stories from public employees who will share how defined-benefit pensions have shaped their careers and retirement—and share, of course!