Question

Pension plans have helped improve the economic status of many older Americans. They have also resulted in:

A) eliminating income disparities among groups of older persons.
B) perpetuating inequities between male and female workers.
C) reducing the need for Social Security income for many elders.
D) reducing the need for employee health benefits.

Answer 1

Pension plans have improved the economic status of older Americans, but they have also perpetuated inequities between male and female workers. They have reduced the need for Social Security income, but can lead to loss of buying power due to fixed income.

Step-by-step explanation:

While pension plans have helped improve the economic status of many older Americans, they have also perpetuated inequities between male and female workers. This is because traditional pension plans, known as 'defined benefits' plans, often provide a fixed dollar amount per year at retirement that does not increase with inflation. Over time, this can lead to a considerable loss of buying power for retirees receiving a fixed income. However, it's important to note that pensions have also reduced the need for Social Security income for many elders, as they provide a separate source of retirement income.