That’s a 23% increase from 2019 to 2024, even as California navigated through a pandemic disruption. This trend report shows how pension dollar spending by retirees and beneficiaries continues to support communities across the state year after year.
The new CalPERS Retiree Pensions: Powering California’s Communities Economic Impact Trends report tracks how retiree and beneficiary spending changed over time, showing a steady pattern of resilience, recovery, and growth.
- In 2019, pension spending provided a strong economic foundation.
- In 2020, it remained stable during the pandemic’s unprecedented disruption.
- By 2022, it was helping fuel recovery.
- And in 2024, CalPERS pension spending reached its highest recorded impact.
Real Impact of CalPERS Pensions on California’s Economy
The $34.6 billion economic impact shown above has grown over time and shows that nearly 158,000 jobs were supported and $1.6 billion in tax revenue was generated from the everyday spending by CalPERS retirees and beneficiaries.
With more than 80% of retirees and beneficiaries living in California, most pension dollars stay in-state and continue circulating through local businesses and communities. As retirees spend money on housing, groceries, healthcare, transportation, dining, travel, and other everyday needs, their income provides a steady source of economic activity across the state.
The report also shows this impact across industries, with healthcare and social services leading job growth at 36.5%. In large counties, pension spending supports major economic activity.
- In Los Angeles, $3.27 billion in economic impact was generated and over 15,000 jobs were supported, while Sacramento ranked second statewide with nearly 14,800 jobs supported and $2.87 billion in economic activity.
- In smaller and rural communities, pension payments account for 3 to 8% of Gross Regional Product (GRP) in many areas and reach 6 to 9% in counties such as Sierra, Lassen, and Del Norte, helping sustain local businesses and jobs.
Real Members. Real Impact.
To bring the numbers to life, we asked members at the Redding CalPERS Benefits Education Event how they expect to spend their pension income in retirement. Their answers reflect the everyday realities behind the data, with retirees spending on housing, utilities, food, travel, family support, and the simple goal of enjoying retirement after years of service.