In today’s job market, retirement security can be a significant concern. Many companies offer 401(k) plans, which place the responsibility for saving on employees, and traditional pensions are becoming increasingly rare.
Bureau of Labor Statistics data shows only 15% of private industry workers have access to this guaranteed pension in their golden years. However, if a pension is a priority for you, there are still options. This article will explore some surprising careers that still offer this valuable perk.
Public School Teachers
Unlike most private sector jobs, where traditional pensions are rare, public school teachers are one of the lucky groups. A whopping 90% benefit from retirement plans. Retirement plans calculated based on their salary and years of service offer teachers a guaranteed income stream in retirement. This financial security is a major perk, attracting talented individuals to the crucial teaching profession.
Government Jobs
Government jobs stand out for their pension offerings. US Bureau of Labor Statistics data states that 86% of state and local government employees have access to traditional pensions. This means secure retirement income based on salary and years of service, a major perk for government careers like city planners or maintenance workers. Even with some shifts towards alternative plans, pensions remain widely available for new government hires, especially those with union representation.
Airline Pilots
Airline pilots are one of the few remaining professions where traditional pensions might still be available. This is particularly true for pilots employed by legacy airlines with strong unions. These pensions offer a significant advantage: a guaranteed income after retirement, calculated based on a pilot’s salary and years of service. However, the landscape is shifting. While some airlines may still offer these pensions, others are transitioning to alternative retirement plans, such as 401(k)s or defined contribution plans. Most airline pilots receive a pension, but the amount is around $50,000 annually.
Railroad Workers
The Railroad Retirement Program, administered by the Railroad Retirement Board (RRB), ensures these workers receive essential benefits. To qualify, a railroad worker typically needs at least ten years of service or five years after 1995. Full retirement benefits become available at age 60 with 30 years of service. Moreover, the RRB extends benefits to family members and survivors.
Police Officers
Police officers are another group fortunate enough to have access to traditional pensions in many jurisdictions. These pensions serve a dual purpose: attracting qualified individuals to the demanding and often risky job and rewarding them for their years of dedicated service to the community. Unlike the private sector, where pensions are scarce, police officers can retire with a significant portion of their final salary after 20-30 years, providing them with a secure and stable income in retirement. The pensions can vary depending on location, years of service, and rank.
Firefighters
Like their counterparts in law enforcement, firefighters enjoy the significant benefit of traditional pensions. These pensions act as a well-deserved reward for firefighters’ bravery, commitment, and the risks they take every day. These pensions are typically part of government benefit packages, ensuring well-deserved financial security for these selfless heroes. In some states, even volunteers can join the party. Washington’s Volunteer Firefighters’ Pension Plan allows volunteers with ten years of service and contributions to participate, with additional service boosting their retirement payout.
Registered Nurses
While not universal, registered nurses have a better chance of securing a pension than most professions. Around 91% of RNs receive retirement benefits, with defined benefit plans being the most desirable. These plans, common for government or unionized nurses, guarantee a set retirement income based on salary and service. This financial security adds another layer of appeal to a career dedicated to patient care.
Utility Company Workers
Unlike many professions, utility workers enjoy a high chance of having a traditional pension in their retirement package. Bureau of Labor Statistics data shows 76% of utility company employees have pension coverage. While some companies have closed these plans for new hires, existing workers remain covered. This perk is likely due, in part, to the strong union presence in the industry.
Military
Our military heroes deserve a secure retirement. Those who serve on active duty or in the reserves for a designated time, typically at least 20 years, qualify for military pensions. These pensions provide a reliable income stream in retirement, with benefits that increase based on service length. Additionally, military pensions are adjusted for inflation to maintain their value, and service members can choose to enroll in a survivor benefit plan that supports their families after retirement.
Public Transit Operators
Public transit operators can find positions with traditional pensions as part of their benefits package. Depending on the agency, these pensions can offer various retirement options. For instance, New York City’s TOF plan allows retirement at age 55 with 25 years of service, while the MTA provides a similar benefit at age 57 with 20 years. Remember, eligibility can vary by agency.
Electricians
Electricians, particularly those in unions like the International Brotherhood of Electrical Workers (IBEW), are fortunate to have access to traditional pensions. These plans, like the National Electrical Benefits Fund (NEBF), offer a secure income stream after retirement thanks to direct contributions from employers. The retirement benefits can vary depending on the employer. If you’re unionized, a career as an electrician can be a great path to a secure financial future.
Postal Workers
Unlike most private-sector jobs, postal workers benefit from a secure retirement thanks to traditional pensions. These pensions are part of the federal retirement program and are calculated based on factors like salary and years of service. This means postal workers can look forward to a guaranteed income stream after retirement, providing valuable financial security. Depending on when you were hired, there are two programs: CSRS for pre-1984 employees and FERS for those hired after. While FERS offers a smaller monthly benefit, it comes with Social Security and Thrift Savings Plan contributions.