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The study also found that gender and race gaps in poverty shrunk among those with pensions. Only 2% of females with pension income were considered poor, compared with 18.4% without pensions. This was compared with 1.3% of men with pensions who were considered poor and 11.7% without pensions. In regard to race gaps, 1.5% of white older Americans with pension income were classified as poor, and 12.4% were considered poor without them. The older black population saw 2.9% classified as poor with pensions, compared with 26.9% considered poor without them. The Hispanic population also had a large gap in poverty levels between those with pensions (2.2%) and those without (25.4%). “The analysis indicates pensions exert an independent, positive impact on older Americans’ well-being—an effect we call the ‘pension factor,’” said Frank Porell, professor of gerontology at University of Massachusetts Boston and co-author of the report. “This ‘pension factor’ is particularly strong for more vulnerable subpopulations of elder households. In fact, gender and racial disparities in poverty rates, material hardships and public assistance rates are greatly diminished, and in some cases nearly disappear, among households receiving pension income.” The report was conducted using the U.S. Census Bureau’s Survey of Income Program Participation (SIPP) panels. The study sample included SIPP respondents ages 60 or older and all households with a head of household ages 60 and older. Additional analysis from the survey is available at www.nirsonline.org.
The study also found that gender and race gaps in poverty shrunk among those with pensions. Only 2% of females with pension income were considered poor, compared with 18.4% without pensions. This was compared with 1.3% of men with pensions who were considered poor and 11.7% without pensions.
In regard to race gaps, 1.5% of white older Americans with pension income were classified as poor, and 12.4% were considered poor without them. The older black population saw 2.9% classified as poor with pensions, compared with 26.9% considered poor without them. The Hispanic population also had a large gap in poverty levels between those with pensions (2.2%) and those without (25.4%).
“The analysis indicates pensions exert an independent, positive impact on older Americans’ well-being—an effect we call the ‘pension factor,’” said Frank Porell, professor of gerontology at University of Massachusetts Boston and co-author of the report. “This ‘pension factor’ is particularly strong for more vulnerable subpopulations of elder households. In fact, gender and racial disparities in poverty rates, material hardships and public assistance rates are greatly diminished, and in some cases nearly disappear, among households receiving pension income.”
The report was conducted using the U.S. Census Bureau’s Survey of Income Program Participation (SIPP) panels. The study sample included SIPP respondents ages 60 or older and all households with a head of household ages 60 and older.
Additional analysis from the survey is available at www.nirsonline.org.
Corie Russelleditors@plansponsor.com