For decades, workers could count on their employers to continue sending them checks even after they retired. A traditional pension — also known as a defined benefit plan — was the norm in many workplaces, but rising costs have made them a relative rarity nowadays.
“The risk just became too much, I think, for employers to hold that on their balance sheet,” says Murtaza Rawat, pension actuary and risk mitigation expert with Gallagher, a global insurance brokerage, risk management and consulting firm in Austin, Texas.
Rather than promise to send employees pension payments in retirement, most businesses now use defined contribution retirement plans, such as 401(k) accounts. With these, a company deposits a certain amount into worker accounts but doesn’t have to pay out a specific amount in benefits in the future.
However, traditional pensions are still available if you know where to look.
[READ: What’s the Difference Between a Pension Plan and a 401(k)?]
Why Employers No Longer Offer Pensions
Traditional pensions became an expensive proposition for employers, which is largely what led to their demise, according to experts.
“The challenge is that every employer has to guess that they have enough money to give to (retirees),” says Steve Parrish, professor of practice and a scholar in residence at the Cary M. Maguire Center for Ethics in Financial Services at the American College of Financial Services in King of Prussia, Pennsylvania.
And guessing how much money is needed isn’t easy. There are three unknowns that have led many employers to shy away from traditional pensions, according to Robinson Reyes Peña, assistant teaching professor in the College of Business at Florida International University in Miami. These are reasons pensions are risky for companies:
— Employers don’t know how much an employee will earn throughout their career.
— Employers don’t know how long an employee will work.
— Employers don’t know how long an employee will live after retirement.
“There is a liability the employer has to deal with when a traditional pension is in place,” Reyes Peña says.
However, the above unknowns make it difficult for employers to know exactly how much that liability will cost them. Plus, companies must contend with market risk. Benefits must be paid on schedule regardless of how well or poorly pension investments perform.
“Plan sponsors can’t handle that volatility from year to year,” says Brian Evitts, president of the actuarial division for accounting firm CBIZ in Philadelphia.
According to Renee Barber, global director of recruiting with TYR Talent Solutions, there is also less demand for pensions today, particularly among Gen Z workers. Young adults may only spend a few years in a job before moving on, and they don’t want their retirement benefits dependent on working for decades for the same company.
“401(k)s are easier,” Barber says. “They are portable. There is so much more flexibility.”
[Read: 401(k) Mistakes Job Hoppers Make.]
Jobs Most Likely to Have a Traditional Pension
Jobs nowadays are more likely to come with a 401(k) or similar retirement account. If you find a position with a traditional defined benefit plan, remember that the job landscape can quickly change. “Just because your company has a plan that’s offered today, that doesn’t mean it’s always going to be around,” Rawat says.
Still, the following occupations are known for offering pensions.
— Finance professionals
— Firefighters
— Government workers
— Lineworkers
— Military members
— Police officers
— Teachers
— Truck drivers
— Unionized employees
Finance professionals
Only 15% of private industry workers had access to a defined benefit pension plan in March 2023, according to the Bureau of Labor Statistics. However, 33% of workers in the financial activities sector had the possibility of receiving a traditional pension, the highest level among all industries.
PNC and U.S. Bank are two financial companies that list pensions as a workplace benefit on their career pages.
Firefighters
Firefighters are another group of public servants who may be given traditional pensions as a retirement benefit.
Reyes Peña notes that a pension may be used to retain employees with specialized skills. Many communities invest significant time and money into training firefighters, and a pension benefit may encourage them to remain with a department for an extended period.
Government Workers
Beyond the specific examples on this list, government workers at all levels — local, state and federal — are more likely to receive pensions than those employed by private companies.
“These are the sectors that tend to not get on board with new hiring trends,” Barber says. That makes them slow to embrace new workplace benefits, such as switching from a defined benefit pension to a defined contribution plan.
Lineworkers
Utility employees such as lineworkers are another group that has traditionally had access to pensions. This is most common when workers belong to a union such as the International Brotherhood of Electrical Workers.
Military Members
Military members fall under the umbrella of government workers, but they have distinct retirement benefits. Under the current blended retirement system, U.S. military members save in a thrift savings plan for retirement but also receive a pension based on the average of their highest 36 months of basic pay.
“That’s a place where pensions are, and there’s no sign of them going away,” Rawat says.
Police Officers
Pensions are also commonly offered to police officers and other law enforcement personnel.
“We know a lot of government workers have defined (benefit) plans,” Parrish says.
In fact, 86% of state and local government workers — which includes most police officers — had access to a defined benefit retirement plan in 2024, according to the BLS.
[Read: 10 Job Search Websites and Apps for Retirees in 2025]
Teachers
Public school teachers at the K-12 and postsecondary levels have historically had access to pension plans.
They are used as a “big incentive to retain human capital,” Reyes Peña says.
While teaching can be a challenging career and isn’t known for high pay, school systems use pensions as a way to attract workers and retain them year after year. Future teachers should be aware, though, that some school pension plans are unfunded, which means they don’t currently have enough assets to pay out all the benefits they are expected to owe in the future.
Truck Drivers
From heavy truck drivers to delivery employees, truck drivers may find a traditional pension is part of their workplace benefits, especially if they belong to a union.
“As a union, you have that bargaining power,” Rawat says. This means that drivers who are Teamsters are more likely than non-unionized drivers to have a pension benefit.
Unionized Employees
Outside of finding a government job, joining a union may be your best bet to earn a traditional pension. Two-thirds of private industry unionized workers had access to a defined benefit plan in 2023, the BLS reports.
“A lot of unions still negotiate for their pension plans,” Evitts says. While similar in structure, these plans may differ in how employees accrue benefits and when they are able to access them.
Unionized workers in the manufacturing, transportation and construction industries are most likely to get access to a traditional pension as part of their negotiated benefits.
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9 Jobs That Still Offer Traditional Pensions originally appeared on usnews.com
Update 03/19/25: This story was published at an earlier date and has been updated with new information.
