These Are Jobs for Which You Can Still Get a Pension
In an era when employer-sponsored retirement plans like 401(k)s have become the norm, pensions are becoming a dying breed. A pension is a retirement plan that guarantees retirees a stable stream of income for life, with the employer bearing the investment risk. In contrast, 401(k) and 403(b) plans are defined contribution plans in which employees assume the investment risk and must carefully manage their retirement savings.
Although pensions were once common across all industries, economic pressures and changes in accounting rules have led many private companies to freeze or terminate their pension plans. However, there are still a few bastions where traditional pensions have been preserved. Here are some of the jobs that still offer this coveted retirement benefit.
Government vacancies
If pensions are your priority, a government job is the way to go. Many government jobs at the federal, state and local levels still provide retirement plans for their employees. This includes positions such as public school teachers, police officers, firefighters and other government employees. Pension benefits are usually part of the compensation package negotiated by public employee unions.
Utilities
Utility companies, such as electricity, gas and water providers, often still have pension plans. The regulated nature of utilities has allowed some to maintain their defined benefit pension plans.
Unions
Jobs covered by a union labor agreement, especially in industries such as transportation, manufacturing or construction, are more likely to include a pension as a hard-earned benefit.
Military
After serving 20 years or more, military personnel are eligible for a military pension that pays a lifetime retirement benefit.
Some corporate giants
A small number of large corporations, although less frequently than in previous decades, still offer pension plans. These include some automobile companies, airlines, and other legacy companies with a strong unionized workforce.
The appeal of pensions is obvious: they provide retirees with a reliable income stream that is not tied to market returns. But the costs and risks associated with pension benefits have driven them down. Today, for most workers, a 401(k), IRA or similar defined contribution plan is their primary employer-sponsored retirement vehicle and places investment responsibility on their shoulders. Pensions, although disappearing, still exist for some occupations, especially in the public sector.