Arizona pensioners receive higher benefits than the average pensioner in the U.S., and the state itself is more reliant economically on pension benefits than many states in the country, according to a new report.
From the Arizona Republic:
Traditional pensions help more than 140,000 Arizonans make ends meet in retirement by providing an average income of $1,923 a month, according to a study estimating that more than 24 million Americans receive such benefits.
The report by the National Institute on Retirement Security, which used 2012 data, suggests that Arizonans rely a bit more heavily on pensions than Americans generally. The average Arizona pension amounts to roughly $23,074 a year, compared with average yearly benefits of $19,678 across the nation.
In terms of overall pension income, economic output generated by pensions and associated tax revenue, Arizona ranks 20th among the states. It is 17th in another measure: the number of jobs supported from spending by retirees who have pensions.
In general, every $1 in pension benefits generates nearly $2 in economic output, according to the report. Retirees support the most jobs in restaurants/food services, health care and retailing.
Higher pensions are economically beneficial to the state because retirees spend large portions of their checks on food, medicine, housing or even luxury items such as cars. Higher benefits, according to the report, leads to higher economic output.
Photo: “Entering Arizona on I-10 Westbound” by Wing-Chi Poon – Own work. Licensed under Creative Commons Attribution