Top Five Jobs That Still Offer Traditional Pensions in the U.S.

By Moon Harper

Jan 18, 2024 04:48 AM EST

Traditional Jobs with Pension — (Photo : Pixabay/Alexa)

Retirement plans, typically seen as a time for relaxation and pursuing a passion, have changed over the years due to economic fluctuations and changes in employment, leading retirees to reassess their post-retirement lives.

COVID-19's "Unretirement" Trend

Given the challenges retirees experience without a pension, more people are working beyond retirement age. In the U.S., 32% of individuals aged 65 to 69 were still employed in 2017, up from 22% in 1994. Similarly, in the U.K., employment rates for individuals over 65 doubled between 1993 and 2018.

Amid the COVID-19 pandemic, many older professionals left the workforce, with over 250,000 50-to-64-year-olds quitting jobs in the U.K. and over 3 million Americans opting for early retirement. However, due to inflation and financial worries, the number of people "unretiring" increased by 3.3%, surpassing the sub-3% average since 2017, according to an Indeed.com report.

Do All Retirees Want to Work After Retirement?

According to labor economist Teresa Ghilarducci, encouraging retired workers to rejoin the workforce could help ease labor shortages, especially in the healthcare and childcare sectors. However, employers are hesitant due to age discrimination concerns, leading to more layoffs of older workers with higher salary expectations. Also, some retirees may have no interest in returning to work. For those who can't or choose not to work after retirement, pensions play a vital role as a lifeline, offering financial stability and support during non-working years to meet basic needs and maintain a decent standard of living.

5 Jobs That Pay Traditional Pensions

Here are some companies and industries that include pensions in their employee compensation package:

1. Military Personnel

Military service members may be eligible for retirement payments after serving for at least 20 years, computed using different methods, often providing more generous benefits for individuals who serve longer. Military pensions are usually adjusted to keep pace with inflation and preserve value. Retirees can also participate in a survivor benefit plan, providing annuity payments to their surviving family members in case of their death.

2. Postal worker

The United States Postal Service (USPS) has included traditional pension benefits in the compensation packages, offering a defined benefit pension and disability coverage for postal workers that depends on age and years of service.

3. Manufacturing and Production Employee

Workers in physically demanding jobs and unionized trades often receive pensions as part of their retirement benefits in the past but this has been declining recently. JM Family Enterprises, a well-known private manufacturing company in the U.S., allows employees to qualify for the pension plan shortly after being hired. This reflects the company's dedication to ensuring retirement security for its workforce.

4. Correctional Officer

Correctional officers hold one of the most respected and well-compensated jobs in the U.S. As public sector employees, correctional officers qualify for defined benefit pension plans based on years of service and salary. Traditional pensions are a valuable incentive to attract and retain qualified correctional officers, providing them with long-term financial security.

5. Construction Worker

Construction workers have a median annual salary of $37,520, but specialization and additional training can lead to higher pay. Although formal education requirements are minimal, specific roles such as carpenters or equipment operators tend to offer higher average salaries.

Approximately 27% of construction workers, especially those in unionized private sector jobs like trucking, hotels, construction, groceries, and nursing, have access to traditional pension plans, which often include defined benefit plans, as noted by Laura D. Quinby, a senior research economist at the Center for Retirement Research at Boston College.