A solid pension can be hard to come by.
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While some older retirees rave about the benefits of their private pension plans, some modern-day workers are finding other ways to prepare for retirement — especially since those types of packages seem scarce nowadays.
According to 2018 data collected by Forbes, only about 20 percent of the full-time private sector workforce still has traditional pensions while 74 percent opted for contribution plans. In 2018, a Willis Towers Watson study also found only 16 percent of Fortune 500 companies offer full-time employees such a plan.
Compared to a 401(k), a traditional pension is less risky, providing guaranteed income for life. It's also less cost-effective.
"Employees do not have control of investment decisions with a pension plan, and they do not assume the investment risk. Rather, contributions are made, either by the employer or by the employee, often both, to an investment portfolio that is managed by an investment professional," Investopedia explains in a blog post. "The sponsor, in turn, promises to provide a certain monthly income to retired employees for life based on the amount contributed and, often, the number of years spent working for the company."
If you're on the lookout for the rare job with traditional benefits, you may want to focus on government-related gigs or union sectors, according to new analysis from U.S. News & World Report.
On Monday, the publication revealed a list of 10 industries that still offer traditional pensions. Here's a look.
- State and local government
- Protective service
Overall, teachers appeared to come out on top — with nearly 90 percent of primary, secondary and special education teachers being offered a traditional pension plan, reported U.S. News & World Report, citing data from the Bureau of Labor Statistics. Nearly 60 percent of professors at universities are also reportedly receiving pensions. However, personal finance site GoBankingRates notes that teachers make more money in some states than others.
Positions within the state and local government are also good options for those looking for a traditional pension.
"Nearly all public-sector employees are entitled to pensions," GoBankingRates says based on data from the statistics bureau.
Utility companies were also named in the fields that offer pensions — more than 70 percent of employees in this industry are given coverage, according to the report.