Issues & Perspectives Archives

The Latest on Social Security’s Finances and Future

Posted on July 23, 2026July 29, 2026 by Claire Vogl

Most PERA members do not pay into Social Security while they work for a PERA employer; PERA serves as a substitute for Social Security, providing retirement income as well as survivor and disability benefits. However, many PERA members also expect to receive a Social Security benefit in retirement due to outside private-sector work.

We’re taking a look at where things stand and the latest efforts to improve Social Security’s finances.

Did you know? Colorado PERA has been providing public employees with retirement and other benefits since 1931, longer than Social Security. PERA and Social Security are separate benefit programs and neither affects the other. Learn more about PERA and Social Security.

Social Security’s financial health

Every year, the Social Security and Medicare Boards of Trustees release a report outlining the financial status of the trust funds from which Social Security and Medicare benefits are paid. According to the most recent report, the Old-Age and Survivors Insurance (OASI) Trust Fund, which pays retirement and survivor benefits, has enough money to pay full benefits until late 2032. The Disability Insurance (DI) Trust Fund is in better shape and is expected to continue paying full benefits through at least 2100. If the two funds were combined, they would deplete their reserves in 2034, according to the report.

It’s important to note that the OASI trust fund will not run completely out of money in 2032; contributions continue to flow into the trust fund through federal payroll taxes, and that regular income is enough to fund 78 percent of scheduled benefits, according to the Trustees report.

Windfall Elimination Provision and Government Pension Offset

In early 2025, then-President Joe Biden signed into law the Social Security Fairness Act, which repealed Social Security’s Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). The WEP and GPO had been in place for decades and reduced Social Security benefits for retirees who also received a pension for work not covered by Social Security.

For PERA members, that means retirees who previously saw their Social Security benefits reduced because they receive a benefit from PERA now receive full earned benefits from both PERA and Social Security.

That’s great news for retirees, but the higher benefit payments from Social Security put additional strain on the system’s finances and may speed up the rate at which the OASI trust fund spends down its reserves by six months.

Proposing solutions

The latest Social Security Trustees report has renewed interest among Congressional lawmakers and others to find solutions to the program’s funding struggles.

One such proposal comes from Sen. Bernie Moreno of Ohio and Sen. Elizabeth Warren of Massachusetts. They’re calling for lifting the current cap on income subject to payroll taxes for Social Security, which would result in higher earners paying more into the system. Doing so could add trillions of dollars in additional funding to Social Security over the next decade, they say.

A separate proposal from the nonpartisan Committee for a Responsible Federal Budget (CRFB) focuses on reducing expenses by placing a limit on Social Security benefits. Under the CRFB proposal, benefits would be capped at $100,000 per year, which could save the program more than $100 billion over 10 years, the group said.

To encourage action on the issue, a bipartisan group of lawmakers introduced a bill known as the PROMISE Act, which lays out procedures for introducing and considering legislation to improve Social Security’s solvency. The bill would also create a process for reviewing and addressing the system’s finances every 10 years to ensure Congress is proactive in tackling future shortfalls.

PERA On The Issues will continue to follow this issue and provide updates as legislators tackle Social Security’s finances. Subscribe to our biweekly newsletter to receive updates right in your email inbox.

Should Public Employees Be Required to Participate in Social Security?

Posted on June 2, 2026June 2, 2026 by Kurt Sevits

It’s no secret that Social Security is facing financial trouble in the near future; the program is expected to deplete its reserves in less than ten years, according to the latest estimates.

There have been many suggestions for improving Social Security’s finances, one of which would involve requiring all public employees to participate in Social Security. Some public-sector pension plans—like Colorado PERA—serve as a replacement for Social Security, so neither workers nor their employers contribute via payroll deductions.

However, such a shift in federal policy could have unintended negative consequences, according to a recently released report from the Coalition to Preserve Retirement Security (CPRS) and benefits consulting firm Segal. (The Colorado PERA Board of Trustees employs Segal as its actuarial consultant.)

In “The Hazards of Mandating Social Security on the Public Sector,” the authors argue that mandatory participation could jeopardize existing retirement plans and lead to additional costs for public employees, their employers, and ultimately taxpayers.

Background

Many states have been providing their public employees with retirement benefits longer than Social Security has been around. For example, the Colorado General Assembly created Colorado PERA in 1931, four years before the federal government established Social Security.

It wasn’t until 1950 that Social Security began accepting state and local government workers into the program. Colorado was among the states that stuck with its own plan to provide retirement, disability, and survivor benefits to the majority of its public workforce (some PERA members and members of other public pension plans may contribute to both a pension and Social Security).

Note: If you’re a PERA member who has earned a Social Security benefit from other employment, you’ll receive benefit payments from both PERA and Social Security in retirement. Learn more on the PERA and Social Security page.

According to the CPRS report, more than four million public employees across the country today are not covered by Social Security, and nearly 250,000 of them are in Colorado.

The impact of mandatory Social Security

The potential implications of requiring participation in Social Security can be difficult to predict, since each state or local government and plan is different and could take a different approach.

For states that would opt to preserve existing plans and also join Social Security, there could be significant added costs. Employees and employers both contribute 6.2 percent of payroll through Federal Insurance Contributions Act (FICA) taxes. Adding those contributions to existing payroll deductions for public employee retirement benefits would eat into workers’ paychecks and put financial strain on school districts, state and local governments, and other public employers.

The CPRS report estimates the cost of additional contributions nationwide to be somewhere between $45 billion and $60 billion in the first five years. In Colorado alone, mandatory Social Security could cost more than $2.5 billion, according to the report.

There’s also the potential impact on existing retirement plans to consider. Even if existing plans closed to new members to try to offset the added cost of FICA taxes, for example, the plans would still have to pay retirement benefits their members had earned. And without contributions coming in from working members and their employers, those plans would face additional risk and uncertainty.

In addition, public retirement plans are structured to attract and retain qualified public employees and may provide better benefits that Social Security, especially for workers in demanding and dangerous positions. For example, plans that cover first responders often allow members to retire earlier than plans that don’t. Forcing all employees into Social Security could remove this benefit and make it harder to hire and maintain a talented public workforce.

Would it help Social Security?

Requiring all public employees to participate in Social Security isn’t a sure bet when it comes to shoring up the program’s finances. While increasing the number of participants would increase the amount of money coming into the Social Security trust funds, those new members would also add liabilities—earned benefits—over time, leading to additional expenses for Social Security.

Improving the financial sustainability of the Social Security program is an important goal, and one that will likely require a great deal of discussion between legislators, government officials, and other stakeholders.

While requiring public employee participation may be a part of that conversation, it’s important to keep in mind the potential impacts on employees, employers, governments, and taxpayers who could face additional costs, uncertainty, and other risks.

America Saves Week 2026: Do You Have a Savings Plan?

Posted on March 31, 2026March 31, 2026 by Kurt Sevits

News headlines often declare that Americans aren’t saving enough money. In fact, a recent survey by Bankrate found less than half of those surveyed had enough money to afford a $1,000 emergency expense.

April 6 through April 10 is America Saves Week, an annual initiative of the Consumer Federation of America, a nonprofit consumer advocacy organization. It promotes the value of saving money and the importance of making a plan to save.

The America Saves Week campaign encompasses five themes throughout the week to help make the process of building a saving plan less overwhelming. It’s all about taking small steps that make a big difference in your financial future.

Building a strong foundation

A strong financial foundation begins with knowing where you are and where you want to go. That means taking time to understand your income, track your spending, and identify your goals.

One of the easiest ways to strengthen your financial foundation is to automate your savings. When you schedule regular transfers from your checking to your savings account, you remove the temptation to spend first and save later. You can start small with just $10 or $20 from each paycheck and increase the amount over time.

Expect the unexpected

Whether it’s a flat tire, a medical bill, or a surprise home repair, unexpected expenses can happen any time. Having an emergency fund—even a modest one of just $500—can protect you from relying on credit cards or feeling stressed when something goes wrong.

That first $500 is your first win. From there, you can build toward a larger goal, like one month of living expenses, and eventually three to six months.

Dream big and plan with purpose

Beyond savings for emergencies, you might also be working toward a major milestone in life, such as buying a home, starting a family, or paying for education. Identifying the milestones that are important to you and being deliberate about saving can help focus your efforts and gives you something tangible to work toward.

Rewrite the debt narrative

Rewriting the debt narrative is all about shifting your mindset: Every payment you make, no matter how small, moves you closer to financial freedom and confidence.

Tackling debt can feel overwhelming, but two popular strategies can make it more manageable. The snowball method involves focusing on your smallest debt first for quick wins and motivation, while the avalanche method focuses on paying off your highest-interest debt first to save the most money over time.

Your story, your future

Whatever your savings goal, start small and build on that momentum over time. Financial success rarely happens overnight. It’s built through small, consistent habits that add up over time. Every intentional step you take today will help shape the life you want tomorrow.

PERA resources to build financial confidence

Our Financial Wellness Library contains articles on topics such as saving and planning, creating a budget, and getting ready to retire.

We also offer a variety of webinars—live and on-demand—to help PERA members better understand their benefits and retire with confidence.

MORE RESOURCES:

Report: Many Workers Struggle to Save for Retirement on Their Own

Posted on March 3, 2026May 8, 2026 by Kurt Sevits

A new report is shedding light on the challenges many workers continue to face when saving for retirement.

According to the National Institute on Retirement Security (NIRS), nearly half of working-age Americans don’t participate in any employer-sponsored retirement plan and struggle to reach recommended levels of savings. In fact, many have little to no savings at all, NIRS found.

Despite decades of policy changes and other efforts to bolster retirement security, it’s clear that many workers—especially those in the private sector—are still unable to save for retirement on their own.

The state of workers’ retirement readiness

For its report titled, “Retirement in America: An Analysis of Retirement Preparedness Among Working-Age Americans,” NIRS researchers used data from the U.S. Census Bureau’s Survey of Income and Program Participation. That data is as of December 2022.

Unsurprisingly, NIRS found that employees who have access to a retirement plan through work are much more likely to save money for retirement than those who don’t. Regardless of plan access, however, the analysis found most workers still aren’t saving enough.

Among all working-age adults (defined here as workers between the ages of 21 and 64), the median balance of defined contribution (DC) retirement accounts like 401(k)s was just $955 in 2022. Examining only accounts that had a positive balance and eliminating those with no savings at all, the median was $40,000. According to NIRS, workers with positive DC account balances had reached a median of just 18% of their recommended savings based on age.

There are many reasons why people might not save as much money as experts recommend, including competing financial priorities such as living expenses and debt.

Taking on debt to attend college, for example, can simultaneously improve a person’s access to employment and benefits while also making it more difficult to achieve savings goals. NIRS found that while adults who carry student loan debt are more likely to have and participate in a retirement plan through their employer, they also tend to have lower account balances and lower net worth.

Public pensions and retirement security

Chart showing changes in private sector retirement plan participation from 1979 to 2023, with declining defined benefit plans and increasing defined contribution plans.

Access to and participation in a retirement plan is much higher in the public sector, where many employees have access to a defined benefit (DB) plan, also known as a pension. For example, NIRS found that 88% of public administration workers and 74% of educational service workers participate in a retirement plan while overall participation is around 50%. As of the end of 2022, just 17 percent of all American workers were participating in a DB plan.

A DB plan has the benefit of making saving for retirement easy—for most Colorado PERA members, enrollment in the PERA DB Plan is automatic and their contributions to the plan are set in statute. That means employees don’t have to opt in or decide how much to save. And when they retire, PERA members can count on receiving reliable and predictable monthly income they can’t outlive.

Colorado PERA also offers all members access to the voluntary PERAPlus 401(k) and some employers offer the PERAPlus 457 Plan, providing members with additional tools to ensure they have the savings they need to meet their retirement goals.

While saving for retirement continues to be a challenge for many American workers, PERA remains committed to providing a secure retirement to the hardworking Coloradans who serve our state.

Year in Review: Our Top Articles of 2025

Posted on December 15, 2025December 15, 2025 by Kurt Sevits

As the year wraps up, we’re taking a look back at the articles that captured the attention of PERA On The Issues readers in 2025. Here are our most-read articles of the year.

1. Congress passes Social Security Fairness Act and repeals WEP and GPO

Social Security’s Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) have long been topics of interest to PERA On The Issues readers. It’s no surprise that news about Congress passing the Social Security Fairness Act, which repealed both WEP and GPO, drew a great deal of attention. Our articles on the bill’s signing, initial estimates that the bill would take a year or more to implement, and then the announcement that the Social Security Administration was expediting benefit processing together accounted for more than a quarter of all visits to the blog this year.

2. IRS updates contribution limits and other tax provisions for 2026

With 2025 winding down, many people are already looking ahead to 2026 and making financial preparations for the new year. Our article highlighting inflation adjustments for retirement plan contribution limits, health savings accounts, tax brackets, and other tax provisions quickly became one of our most-read articles of the year.

3. Lawmakers propose and pass PERA-related legislation

During the 2025 legislative session, state lawmakers introduced seven bills that pertained to Colorado PERA, and our article tracking those bills throughout the session was the second most popular article of the year. Of those seven bills, four passed and became law.

4. New tax deduction for seniors included in federal legislation

The tax and spending bill commonly known as the One Big Beautiful Bill Act (OBBBA) included a new tax deduction for older Americans that takes effect for the 2025 tax year. The deduction—up to $6,000 per eligible taxpayer—applies to taxpayers who are 65 or older and begins to phase out for individuals with modified adjusted gross income over $75,000.

5. The OBBBA makes changes to health and food assistance programs

In addition to the new senior tax credit, the One Big Beautiful Bill Act made changes to federal assistance programs like SNAP and Medicaid. In particular, the bill established stricter guidelines for who can qualify for assistance under those programs. It also changed some enrollment processes for people who shop for health insurance on their own instead of receiving coverage through an employer.

We want to thank everyone who subscribes and reads PERA On The Issues. We appreciate your readership, and we look forward to helping you stay informed in the new year.

If you haven’t already, be sure to sign up for our biweekly newsletter to stay in the loop in 2026.

IRS Releases 2026 Tax Brackets, Contribution Limits, Other Tax Updates

Posted on November 20, 2025November 20, 2025 by Kurt Sevits

The IRS recently announced adjustments to marginal tax rates, retirement plan contribution limits, and other provisions that will be helpful for financial planning in the new year.

2025 0BBBA updates

While most of the changes below apply to tax year 2026, the federal tax and spending bill known as the One Big Beautiful Bill Act (OBBBA) made some important changes that apply to tax year 2025.

Notably, the standard deduction for 2025 increased to $15,750 for single tax filers and $31,500 for married couples filing jointly.

The OBBBA also established a new tax deduction for taxpayers who are at least 65 years old. For tax years 2025 through 2028, eligible seniors can deduct an additional $6,000 from their taxable income. The deduction phases out for individuals with modified adjusted gross income over $75,000.

2026 retirement plan contribution limits

In the new year, employees will be able to set aside more money in defined contribution retirement accounts such as 401(k), 403(b), and 457 plans.

The maximum amount a person can contribute to those plans is $24,500 for 2026, an increase of $1,000 from 2025. The catch-up contribution limit for most employees who are 50 or older will increase to $8,000.

Under the SECURE 2.0 Act, workers who are 60, 61, 62, or 63 have a higher catch-up contribution limit. That limit remains unchanged for 2026 at $11,250.

For individual retirement accounts (IRAs), the annual contribution limit will increase to $7,500 in 2026 and the catch-up contribution limit will be $1,100.

2026 HSA/FSA contribution limits

The amount of money workers can contribute to medical savings accounts also will increase in 2026.

HSA: Individuals enrolled in a high deductible health plan (HDHP) with a health savings account (HSA) will be able to contribute up to $4,400, and those with family coverage will be able to save a maximum of $8,750.
FSA: For workers who don’t have an HDHP with an HSA and instead use a flexible spending account (FSA), the maximum contribution for 2026 is $3,400. For plans that allow unused balances to roll over, the maximum amount that can be rolled over will increase to $680.

2026 tax rates

Below are updated marginal tax rates for single taxpayers and married couples filing jointly. Visit the IRS website for more tax tables and additional details.

Note that since these changes are for tax year 2026, they will generally apply to tax returns filed in 2027; 2025 tax rates will apply to returns filed in 2026.

37% for incomes over $640,600 ($768,700 for married couples filing jointly)
35% for incomes over $256,225 ($512,450 for married couples filing jointly)
32% for incomes over $201,775 ($403,550 for married couples filing jointly)
24% for incomes over $105,700 ($211,400 for married couples filing jointly)
22% for incomes over $50,400 ($100,800 for married couples filing jointly)
12% for incomes over $12,400 ($24,800 for married couples filing jointly)
10% for incomes of $12,400 or less ($24,800 for married couples filing jointly)

2026 standard deduction

The standard deduction for 2026 will increase to $16,100 for single tax filers and $32,200 for married couples filing jointly.

Taxpayers who are 65 or older can take an additional standard deduction, which is also adjusted for inflation. For tax year 2026, that amount is $2,050 for single taxpayers and $1,650 for married taxpayers or surviving spouses.

Visit the IRS website for more information on these and other tax changes.

PERA benefits and taxes

Colorado PERA benefits are subject to federal income tax, as well as applicable state and local taxes. PERA retirees who would like to update their tax withholding can do so by logging in to their secure member account or completing a paper Form W-4P.

Retirees and benefit recipients can expect to receive their 1099-R tax forms for tax year 2025 in January 2026.

Learn more at copera.org/taxes-on-benefits.

How Are Public Pensions Doing?

Posted on November 11, 2025November 11, 2025 by Kurt Sevits

A recent assessment finds the funding levels of public pension plans across the United States have generally improved in recent years despite market volatility and other challenges.

It’s a positive sign that while access to defined benefit pensions in the private sector has dwindled, many states remain committed to providing their public employees with a secure retirement.

Assessing the financial health of public pensions

Pew Research Center, a nonpartisan research firm, keeps track of the financial health of public pensions in all 50 states. Its latest report focuses on plans’ funded ratios, which provide a comparison between a plan’s assets and its future obligations to members. For example, if a plan is 70% funded, that means the plan currently has 70% of the money it would need to pay out all benefits its retirees and working members have earned to date.

In 2023, the most recent year for which Pew has data for each plan, the overall funded ratio for public pensions was 74%. Thirty-five out of 50 states reported funding ratios in 2023 that were higher than in 2022, according to Pew.

A key factor Pew examined is net amortization, a measure of whether a plan receives enough funding and income from investments to reduce its unfunded liabilities—the portion of benefit obligations for which the plan does not have money on hand—while also paying benefits. A positive net amortization trend means the fund is bringing in enough money to pay down debt. Pew found most plans, including Colorado PERA, showed positive amortization from 2019 to 2023.

PERA’s funded status

Thanks to the reforms included in Senate Bill 200 in 2018, PERA is on a path to full funding by 2048. As of December 31, 2024, the combined funded ratio for the five Division Trust Funds (State, School, Local Government, Judicial, and DPS) was 69.2%. In 2018, that number was only 59.8%. Senate Bill 200’s Automatic Adjustment Provision (AAP), which adjusts member and employer contributions, retiree annual increases, and the State’s direct distribution to PERA based on our funding progress, has been an important part of that improvement. The AAP is assessed every year so adjustments can be made as needed without requiring legislative intervention.

As of the end of 2024, PERA remains on track and adjustments via the AAP will not be necessary in 2026.

With budget discussions now underway at the State Capitol, PERA CEO/Executive Director Andrew Roth and Board Chair Hon. Rebecca R. Freyre recently wrote a guest opinion explaining the importance of consistent contributions in keeping PERA on track to reach its funding goal.

“While PERA is on a path to full funding by 2048, it’s important that we stay on that path and follow the plan laid out in SB18-200,” they wrote. “While we’re making progress, we need the General Assembly’s support to keep that momentum going. We all owe it to our members and retirees to stay the course.”

Read more on the Colorado Politics website.

Providing Retirement Security for Colorado

Posted on October 28, 2025October 28, 2025 by Kurt Sevits

October is National Retirement Security Month, and as we wrap up the month, we’re reflecting on how PERA has enabled generations of Coloradans who serve their communities to retire with dignity and peace of mind.

The state of retirement

Surveys often find workers who save for retirement on their own struggle to save enough to support their retirement goals. A recent survey by Schroders found more than 80 percent of workers with an employer-based retirement plan worry about outliving their savings, while more than half fear losing too much money if the stock market drops.

Social Security also faces an uncertain future; the latest forecasts show its trust funds are likely to run out of money in less than a decade, which would lead to future reductions in benefits unless Congress takes action.

PERA, however, is on a clear path. With continued support from the State of Colorado, we expect to reach full funding by 2048, a goal that reflects both our responsibility to our members and our long-term planning discipline.

Pensions and retirement security

The value of a defined benefit plan—also known as a pension—is in the name: it defines what your benefit will be. A PERA member can calculate their retirement income from the day they’re hired because they know the factors that determine it—age, salary, and length of service. There’s no guesswork about how much to save, how to invest it, or when to withdraw. And most importantly, that income is guaranteed for life, no matter what happens in the stock market.

Retirement security is also economic security: When retirees spend their income—on groceries, housing, health care, and other goods and services—they’re supporting Colorado businesses and jobs.

In 2023, PERA paid $4.56 billion to more than 114,000 retirees living in Colorado. According to an analysis by Boulder-based Pacey Nehls Economic Consulting, those benefit payments resulted in $7.1 billion in total economic output and supported 28,525 jobs. Retirees also paid nearly $382 million in local and state taxes on those benefits, helping support public services that make Colorado a great place to live.

How can I promote retirement security?

PERA’s Ambassador Program engages members in the retirement security conversation by sharing the value of PERA to all of Colorado. You can sign up for the Ambassador mailing list to stay in the loop and be notified of any potential legislative changes that might affect PERA, as well as lend your voice to the conversation.

We love to hear from PERA members and retirees who have dedicated their careers to serving Colorado. Browse member stories and fill out our form to share your own PERA story with us.

In addition, independent member and retiree groups like Secure PERA advocate for strengthening and protecting retirement security for Colorado’s public employees. The National Public Pension Coalition does the same on a national scale.

Providing retirement security is what we at PERA have been doing for 94 years, and we plan to continue that work for many more generations to come. Colorado’s public employees deserve it.

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How Private Equity Helps Us Secure Public Employee Retirement

Posted on October 1, 2025October 7, 2025 by Kurt Sevits

At Colorado PERA, we invest for one purpose: To provide a secure and reliable retirement for the people who spend their careers serving our state. We do that by managing a diversified investment portfolio that includes everything from traditional stocks and bonds to investments in real estate and private equity.

Private equity is often less well-understood by individual investors than other types of investments and is an important component of institutional portfolios. Here’s why we invest in this asset class and how it contributes to our members’ hard-earned retirements.

What is private equity?

Simply put, private equity generally refers to investments made in companies that aren’t traded on the public stock exchanges. Those investments can include:

Venture capital: Providing money to young businesses like startups.
Growth capital: Investing in more mature businesses looking to grow or expand.
Buyouts: Purchasing a company or a portion of a company with the goal of growing its value.

We invest in private equity through carefully selected limited partnerships and funds that are managed by experienced professionals. Those funds cover a variety of business areas with high potential for growth, such as technology, energy, and health care.

Why PERA invests in private equity

The PERA Board of Trustees, which oversees PERA’s investments, believes a well-diversified portfolio is key to making sure we can deliver on our promises to members. Our investments in private equity are an important part of that strategy, despite being a relatively small portion of the portfolio. As of June, private equity amounted to 7.5% of the total PERA portfolio with a long-term target of 10%.

We first started investing in private equity in the early 1980s, and those investments have paid off in the years since. In the past decade, for example, private equity has earned an annualized return of 11.5% compared to the total fund’s 8.6% return.

That strong performance helps strengthen the trust funds and ensures we can continue paying benefits well into the future.

Private equity and transparency

Because private companies aren’t publicly listed, financial details on those companies aren’t always available to the public. State law also limits what we can disclose.

Still, we are committed to being as open as possible. You can view a list of our private equity investments on our website, including how much money we’ve committed and each fund’s internal rate of return. We also were an early supporter of the Institutional Limited Partner Association (ILPA), which aims to improve reporting and transparency within the private equity field.

Our team of investment professionals reports regularly to the Board of Trustees, which has a fiduciary duty to act in the best interests of members and retirees. That includes making sure our private equity investments meet our standards for risk-adjusted returns.

Want to learn more?

We produce our Investment Stewardship Report every year to provide more insight into how we manage investments on behalf of our more than 700,000 members and retirees. You can explore a digital interactive summary at copera.org/stewardship-snapshot.

Private equity may be a small portion of our investment portfolio but it’s an important part of the long-term strategy that helps secure our members’ retirements. By investing wisely in both public and private markets, we’re making sure the trust funds remain strong not just for today’s members and retirees, but for generations to come.

Learn more by watching our video, “Investing in Your Future: How PERA Grows Member Benefits.”

Do Employees Change Jobs More Than They Used To?

Posted on September 17, 2025September 17, 2025 by Kurt Sevits

New research on career trends casts doubt on the common belief that younger workers today are hopping from job to job at higher rates than previous generations.

The research from the National Institute on Retirement Security (NIRS) found that while there have been shifts in the labor market in recent decades, job tenure patterns have largely remained the same from one generation to the next.

What the data says

In discussions about employment trends, it’s not uncommon to hear some variation of “young people aren’t sticking around anymore,” and data does show younger workers tend to switch jobs more than others. In their paper, “Debunking the Job-Hopping Myth: A Data-Driven Look at Tenure and Turnover Among Younger Workers,” researchers from NIRS argue that not only has that long been the case, but things aren’t much different now than they used to be.

In analyzing data from the U.S. Bureau of Labor Statistics, NIRS found that employees between the ages of 25 and 34 tended to stay with a given job for about three years in 1983. Fast forward to 2024 and that same age group had a median job tenure of 2.7 years—a difference of only a few months.

The same is true for slightly older workers: the NIRS analysis found job tenure in the 35-44 age group has also remained consistent since the 1980s.

However, NIRS found a surprising trend in the data—it turns out workers approaching retirement age aren’t staying in their jobs as long as they used to. Both the 45-54 and 55-64 age groups showed noticeable declines in career tenure since the 1980s.

Image credit: National Institute on Retirement Security

The researchers argue the change in older groups could be for a number of reasons, including a decline in access to defined benefit (DB) pension plans in the private sector. Because pension benefits are based on a worker’s length of service, they provide a strong financial incentive to stay put compared to other types of retirement benefits.

Employee retention in the public sector

According to NIRS, 86 percent of public employees today have access to a DB plan at work compared to just 15 percent of private sector workers, and rates of quitting are much higher in the private sector. Retirement benefits are a big reason.

In Colorado, as part of a recent study comparing the PERA DB Plan to other types of plans, researchers surveyed State of Colorado employees and a large majority said their retirement plan played an important role in their career decisions. Of those surveyed, 81% said retirement benefits were a factor in their decision to work for the State and 83% cited retirement benefits as a factor in their decision to remain in State employment.

The research from NIRS makes it clear that the need for stable, secure retirement benefits is as strong today as it was decades ago. While some employment trends change over time, workers settling into their careers and planning for the future still value strong benefits that provide peace of mind.