These days, most companies no longer provide traditional pension plans that promise workers guaranteed income in retirement. Only 15% of private industry workers have access to a pension, also known as a defined benefit plan, according to Bureau of Labor Statistics data. This coincides with a trend of more employers shifting to defined contribution retirement plans such as 401(k)s.
However, workers in certain industries may be offered steady pension payments in retirement. Jobs that offer pensions tend to be in specific fields, and government and union employees are especially likely to have access to pension benefits.
[READ: Why Do Jobs No Longer Offer Pensions?]
If you’re interested in a defined benefit retirement plan, consider these jobs during your working years:
— Teacher.
— State and local government.
— Utilities.
— Protective service.
— Midsize companies.
— Nurse.
— Transportation.
— Military.
— Unions.
Teacher
The majority (90%) of public school teachers are enrolled in defined-benefit pension plans, according to Brookings Institution data.
“Teachers are still predominantly covered by defined-benefit pensions,” said Melinda Morrill, professor of economics at the Poole College of Management at North Carolina State University, in an email. “Although public employers are making some movement away from these plans, the vast majority of public sector workers are still covered by defined benefit pension plans.”
The median pay for teachers is $61,690 at the elementary school level and $62,360 at the high school level, but salary can vary considerably by state and school district, according to the BLS. Teachers who meet the pension requirements can expect to continue to receive a specific portion of their former salary in retirement.
State and Local Government
Almost all state and local government employees (86%) have access to atraditional pension plan.
“The government, federal, state and local, would still be the most common place to find defined benefit pensions,” said David Love, economics professor at Williams College, in an email. “Some state and local governments have been in the news for switching to defined contribution plans, but I believe that defined benefits are still widely available for new employees.”
Union government employees are somewhat more likely to have a pension than nonunion workers. Part-time government employees may not qualify for a pension plan.
Utilities
Utilities companies provide pension coverage to 76% of their employees, according to BLS data. Some utilities companies have closed their pension plans to recent hires but continue to provide pension benefits to existing workers. Many utilities companies are unionized, which contributes to maintaining pension plans.
Employees in this industry include electrical power line installers and repairers, electrical engineers, control and valve installers and repairers, and meter readers. At many companies, a retirement account is often provided in addition to the pension plan.
[READ: Essential Sources of Retirement Income]
Protective service
Most workers in the protective services (58%) can expect to have a pension opportunity.
“Police officers and firefighters are likely to have access to a traditional defined benefit pension plan,” said Elizabeth Kennedy, professor of law and social responsibility at Loyola University Maryland, in an email.
Police officersand detectives earn a median annual income of $69,160 per year, and firefighters earn a median of $51,680. Many protective service jobs have rigorous physical fitness requirements. The pension plans provide for former employees who may no longer be able to meet the physical demands of the job.
Midsize Companies
At companies with 500 or more workers, 27% have defined benefit retirement plans that are open to new employees, according to the BLS.
That rate increases as the number of employees drops. For firms with 100 to 499 employees, 35% allow new workers to participate in defined benefit plans. At midsize companies with 50 to 99 workers, three-quarters permit new employees to participate in pension plans. At companies with 50 or fewer workers, 57% of participants are enrolled in defined benefit plans.
Nurse
Nurses spend their days caring for others, and 30% of registered nurses participate in a program to receive pension payments in retirement. Those who work in hospitals are especially likely to have access to a defined benefit pension.
Registered nurses earn a median of $81,220 per year. The need for nurses is expected to grow as the baby boomer population ages and requires more medical services. The BLS projects a 5.6% increase in nursing jobs by 2032. Nurses who work in hospitals tend to work shifts that might include nights, weekends and holidays. Those who work in offices or schools may have more regular business hours.
Transportation
Among transportation and warehousing employees, 40% are eligible to participate in a traditional pension plan.
“In the private sector, the only industries in which new employees have meaningful access to traditional pension plans are those with high union density, such as transportation, construction, manufacturing and maintenance,” Kennedy said.
Depending on the employer, some drivers or certain groups of airline workers might be eligible to participate in a pension plan, although many plans have been frozen or closed to new employees.
[Related:Guaranteed Income Strategies for Retirement]
Military
Service members on active duty or who serve in the Army Reserve or National Guard for a designated period of time — often at least 20 years — may qualify for payments in retirement.
The military uses several methods to calculate retirement payments, but in general, those who serve for longer periods receive more generous payments in retirement.
Military pensions are adjusted to keep up with inflation each year, and retirees can elect to participate in a survivor benefit plan that will provide annuity payments to surviving family members.
Unions
A union card might be your ticket to more comprehensive retirement benefits. Some 66% of private-industry union members have access to a defined benefit pension plan, according to the BLS.
“The unionized workforce includes a range of jobs and occupations, many of which look very different from those historically organized by their union,” Kennedy said.
The United Steelworkers union represents workers across a wide range of industries and jobs, from mining to health care and forestry. Unions often negotiate for better retirement benefits on behalf of their members.
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9 Jobs That Still Offer Traditional Pensions originally appeared on usnews.com
Update 01/11/24: This story was previously published at an earlier date and has been updated with new information.
