Top Careers with Retirement Benefits

Benefits of Jobs with a Pension

Jobs that come with a pension plan are not as common as they used to be. According to data from the Bureau of Labor Statistics (BLS), the percentage of workers with access to pension plans dropped from 38% to 20% between 1980 and 2008. By 2021, only 15% of private-sector workers had a defined benefit pension. This decline in availability has made jobs with pensions more sought after and valued among employees.

Where to Find Jobs with Pensions

If you are interested in securing a job with a pension, there are specific industries, employers, and job types you may want to consider. Government and union jobs are more likely to offer pensions, as well as certain private-sector employers. Keep in mind that many private-sector employers have frozen pension benefits, so it is important to research the most up-to-date information when looking for job opportunities.

Understanding Pensions

A pension is a retirement plan that provides monthly income during retirement. Unlike 401(k)s and IRAs, which are defined contribution plans, pensions are defined benefit plans. This means that participants in pensions are guaranteed a specific income in retirement. The amount of this income may be determined by a flat rate or a formula based on salary and years of service with an organization.

Types of Employers That Provide Pensions

Government workers, both at the state and local level, are more likely to have access to pensions compared to private-sector workers. Federal civilian employees, for example, are covered by the Federal Employees' Retirement System (FERS), which includes a pension plan as one of its benefits. Additionally, unionized industries tend to offer pensions more frequently than non-unionized ones.

Top Companies That Offer Pensions

While many private employers have shifted away from offering pensions in favor of 401(k)s, there are still companies that provide pension benefits. Companies like 3M, Coca-Cola, ExxonMobil, and Prudential are known for offering pensions to their employees. These pensions are often accompanied by other retirement savings options like 401(k) plans.

Best Jobs With Pensions

Some of the best jobs with pensions include roles in education, law enforcement, healthcare, and skilled trades. Teachers, registered nurses, police officers, electricians, and government workers are among those who commonly have access to pension plans. These jobs offer competitive salaries, strong job outlooks, and high levels of job satisfaction.

Tips for Finding a Job With a Pension Plan

If you are actively seeking a job with a pension, consider exploring apprenticeship programs, government job postings, and unionized industries. Utilize resources like the Department of Labor’s Apprenticeship Job Finder and job search sites to identify positions that offer pension benefits. Additionally, staying informed about changes in pension offerings by employers can help you secure a job with a pension plan.