Do you want to find jobs with pensions?

Pensions might seem old-fashioned and while they’re not as common as before, some careers still offer this kind of retirement plan.

Pension plans can be found in both government and certain private sector jobs too. For example, teachers, police officers, and firefighters typically have pensions waiting for them after many years of work. Nurses, government employees, and military members also sometimes have this benefit, which helps them to retire without worrying as much about money.

Even though retirement benefits are changing, with more companies offering plans like a 401(k) where employees contribute, pensions are still very important for many workers thinking about how to save for retirement.

What Is a Pension?

Pensions, also called defined benefit plans, aren’t like regular savings accounts. Instead, your job sets up an amount of money you’ll receive each month after you retire. This is kind of like getting a monthly paycheck that continues even after you stop working.

You might come across terms like 401(k) or IRA (Individual Retirement Accounts). These are known as defined contribution plans because you or your employer add money to them. When you retire, you’ll get whatever amount you’ve saved up in these accounts.

In a traditional pension plan, your employer assures you, “Don’t worry, we’ve already calculated how much you’ll receive later.” This amount is typically based on your years of service and your salary. The amount varies from job to job and state to state. For some, it may be enough to retire on, for others, it may not.

Also, there’s something called vesting. That’s when you’ve worked for a certain period to qualify for the full pension promised to you.

Most Popular Jobs With Pensions

Below are the best jobs with pensions.

1. Public school teacher

Public school teaching is one of the best jobs that can pay you a pension after many years of service.

On average, a teacher in the U.S. can earn around $30,000 a year to start.

Pensions for teachers vary from place to place. But typically, after you teach for a certain number of years, you can get a pension that pays you money regularly when you retire.

Recommended reading: 33 Best Summer Jobs for Teachers To Make Extra Money

2. USPS worker

The United States Postal Service (USPS) has jobs with pensions.

Pension Plans:

• Civil Service Retirement System (CSRS) – If you got hired before 1984, you are probably part of CSRS. This plan gives you a stable pension based on your years of service and salary.
• Federal Employee Retirement System (FERS) – Hired after 1984? Then you’re likely in FERS. It pays a smaller monthly pension, but you also get Social Security and a savings plan that can match your contribution.

Just to give you an idea, under CSRS, if someone with about a $60,000 average salary retires after 20 years, they might see around $1,824 monthly. That’s before any deductions for health insurance or survivor benefits.

3. Police officer (and detective)

Becoming a police officer can be a great job for someone who wants to help their community. Not only do you get the chance to keep your neighborhood safe but you also get some great benefits, like a pension.

Your pay as a police officer can depend on where you live and work.

4. Firefighter

Firefighters often have pensions because their work is tough and risky. With a pension, you know you’ll have money coming in when you retire, based on how long you’ve worked and your salary.

5. Construction worker

If you’re thinking about jobs that have a stable future and a pension, don’t overlook construction work. There are many large construction companies that still have pension plans, although this is becoming less common.

6. Registered nurse

As a registered nurse, you have some options for pensions. If you work as a nurse for the government, like in a public hospital or as a school nurse, you may be able to get a pension.

Some private hospitals and clinics might give pensions too, but it’s not as common.

Recommended reading: 27 Best Side Hustles For Nurses To Make Extra Money

7. Bus driver

Public bus driver positions sometimes come with a pension, such as if you drive for public transportation (the city bus, for example) or for the school system.

8. Government jobs

There are many government jobs with pensions.

You can start looking for government jobs with pensions by researching different levels of government jobs, including federal, state, and local positions.

Federal jobs with agencies like the FBI, IRS, or Department of Education often include pensions. State jobs can be found in departments like transportation, health, or education. Local opportunities might be in city or county offices, police departments, and public schools.

To find jobs, you can also check government job websites. For example, for federal jobs, you can visit USAJobs.gov. Each state has its own job portal, which you can find by searching for your state’s official website. Local government job listings are usually on city or county websites. When looking at job listings, search for keywords like “pension,” “retirement plan,” “benefits,” or “retirement system” to find jobs that have these benefits.

9. Military careers

The U.S. military consists of several branches: Army, Navy, Air Force, Marine Corps, Coast Guard, and Space Force. Each branch provides different career options, so you’ll want to research them to find the one that matches your skills and interests the most.

To be eligible for a military pension, you usually need to serve at least 20 years.

This rule applies to both enlisted personnel and officers. If you serve less than 20 years, you typically won’t get a pension, but you might qualify for other benefits like contributions to the Thrift Savings Plan (TSP) under the Blended Retirement System (BRS).

10. Private sector careers with pensions

Though they’re not as common as before, some companies provide pensions to their employees as well.

According to the Bureau of Labor Statistics, 15% of private industry workers had access to a defined benefit plan (a pension).

Here are some examples:

• Manufacturing jobs – Companies in this field have long been strong providers of pension plans. Jobs ranging from assembly line workers to managers might include these benefits, often because labor unions help keep pensions available.
• Utility companies – When working in electricity, water, or natural gas, you could get great retirement benefits. Jobs in the utilities sector often have pensions because they want to keep employees long-term for steady service. Some job examples of utility workers may include electricians, meter readers, line repairers, and power line installers.
• Transportation – This includes careers with airlines, railroads, and shipping companies. Some of the largest transportation firms provide pension plans because they value your lengthy service and want to keep job satisfaction high.
• Large corporations – There are big names out there that still have a pension. Look for companies with a longstanding history and financial stability, as they are more likely to have kept their pension commitments intact. Some examples of large companies that have pension plans include Ford, General Motors, and IBM. Some insurance companies also have pension plans for certain career paths.

As you can see, there are several private-sector employers that pay a pension as well. So, if you are looking to retire with a pension, then you do not only have to stick with federal, state, or local government jobs.

Frequently Asked Questions

Below are answers to common questions about jobs with pensions.

Is a pension better than a 401k?

A pension provides guaranteed income in retirement based on salary and years of service. A 401(k) is a savings plan where you contribute a portion of your paycheck. Pension plans are less common but have defined benefits, while a 401(k) puts the investment decisions and risks on you. I don’t think either is necessarily better than another; they are just different.

Do any companies still give pensions?

Yes, some companies in sectors like government, education, and certain corporations still have pension plans for their employees. According to the Bureau of Labor Statistics, 15% of private industry workers have access to a defined benefit plan (a pension).

Why did jobs stop offering pensions?

Many companies shifted from pensions to 401(k) plans to reduce long-term financial commitments and shift retirement savings responsibility onto employees. It’s often due to the cost and risk associated with funding traditional pension plans. Pensions are quite expensive for a company to maintain and have.

What are good entry-level jobs with pensions?

Entry-level jobs in the public sector, such as administrative roles in government agencies, tend to come with pensions. Industries like utilities, transportation, and some unionized fields also sometimes have pension benefits at the entry level.

Are there part-time jobs with pensions?

It’s less common, but some part-time jobs with government or union affiliations may have prorated pension benefits. This often requires meeting certain requirements such as length of service and hours worked.

Are jobs with pensions worth it?

Jobs with pensions can be very beneficial as they provide steady income later in life. However, you should also think about the job’s salary, growth opportunities, and if it suits your career goals when deciding if it’s worth it for you.

Plus, a lot of jobs with defined-benefit pensions also have many other things that they offer to their workers, such as better healthcare benefits.

Best Jobs With Pensions – Summary

I hope you enjoyed this article about how to find jobs with pensions.

Some of the best jobs with pensions include public school teachers, USPS, police officers, and firefighters, as well as other local and federal government jobs. There are also, of course, military pensions.

Companies also sometimes have defined-benefit pension plans to bring more financial security to their employees by helping them earn a monthly income after they retire.

As you can see, there is quite a range of jobs that still have pensions today.

There are occupations in both the public and private sector. Some may require trade school or a college degree, and some you can get started as a beginner. As you can see, there are many ways for someone to get a pension these days; it isn’t as rare as you might think.

Pensions can be a great way for retirees to have enough money in their retirement account, although, pensions are usually not enough to live on alone. Some jobs do give generous payments from their pension plan, so it is possible for some retirees to be able to live off of their pension retirement payments alone.

Are you interested in finding a job with a pension? Why or why not?

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