Projected Pension Income: What’s in Store for the Baby Boom Cohort? Equality or Disparity

James H. Moore, U.S. Social Security Administration (SSA)

This study sheds light on the magnitude and nature of the disparities in pension participation and income of the Baby Boomers once those non-disabled individuals reach age 62. Using data from the Modeling Income in the Near Term (MINT) model, this study analyzes the progression of pension participation and pension income within the Baby Boom cohort. The study summarizes how pension participation and income is highly correlated with gender, race, education, and earnings level. Despite an overall increase in projected pension participation and income, women, minorities, individuals with lower education, and individuals with low income are less likely to participate in a pension plan and receive less income from a pension compared to their counterparts. Nonetheless, pension income will continue to be an important source of income for future retirees.