Pension payments not only sustain daily lives, but they also play a crucial role in bolstering the state’s economic strength. Unlike volatile financial markets, pensions provide a steady stream of income and contribute to the local economy. CalPERS is no exception.
The new CalPERS Economic Impacts Report details how retiree pension benefit spending supported California’s economy in 2022.
The Pension Ripple Effect
When retirees and beneficiaries spend their pension checks to purchase goods and services, it provides a steady stream of income for California residents, taxpayers, and local governments, regardless of the economic conditions.
In 2022, the economic impact of CalPERS pension spending increased by over $2.5 billion over the course of two years, to a total of $30.2 billion.
As the fifth largest economy globally, this growth was paralleled by a 19% increase in California’s gross domestic product (GDP) to $3.64 trillion in 2022. The GDP is one way to measure the state’s economic health and output over a specific period. Together, this economic upswing and CalPERS pension spending supported significant benefits including:
- 140,000 jobs in various sectors across the state.
- $1.4 billion in tax revenue boosting essential public services and infrastructure.
- Growth to local California communities with the biggest impact in smaller ones.
Do You Want to Know How Your Pension Spending Supports California?
Read the Economic Impacts of CalPERS Pensions in California report to learn more.