Which Companies and Industries Still Offer Pensions Today? A 2024 Guide for Job Seekers

When hunting for a stable career, one question often gets overlooked: do any companies still offer pensions? The short answer is yes—but don’t expect to find them everywhere. While pensions have largely vanished from the corporate world, certain sectors continue to offer this increasingly rare retirement benefit. Understanding where pensions still exist could significantly impact your long-term financial security.

The Pension Paradox: Why They’re Disappearing

To understand which companies still offer pensions, it’s worth knowing how we got here. Pensions were once the backbone of American retirement security. However, the landscape shifted dramatically starting in the 1980s.

The numbers tell a striking story. According to the Bureau of Labor Statistics (BLS), private-sector employers’ share of retirement costs through pension plans plummeted from 86.1% in 1987 to just 29.4% by 2022. Meanwhile, employees increasingly bear the burden through defined-contribution plans like 401(k)s, which jumped from 13.9% to 70.6% during the same period.

The culprit? Rising pension obligations became seen as too expensive and risky for corporate balance sheets. Add declining union membership into the equation—only 66% of union workers in private industry have access to defined benefit pensions compared to 10% of nonunion workers—and you get a retirement system fundamentally transformed.

What Makes a Pension Valuable

Before exploring which employers still provide pensions, let’s clarify why they matter. A pension is a retirement plan where employers commit to paying employees a guaranteed monthly income for life, typically based on salary history and years of service.

Key advantages include:

• Market-proof income: Unlike 401(k)s that fluctuate with stock performance, pensions deliver fixed payments regardless of economic conditions
• Zero employee risk: The employer assumes all funding responsibility; you don’t have to worry about investment decisions
• Lifetime coverage: Payments continue as long as you live, eliminating the anxiety of outliving your savings
• Family protection: Survivor benefits often extend payments to spouses after your death

This contrasts sharply with defined-contribution plans, where your retirement depends entirely on how much you saved and how investments performed.

Where Pensions Still Exist: 7 Career Paths Worth Considering

So do any companies still offer pensions? The answer is concentrated in specific sectors:

Government and Public Service

Federal employees benefit significantly. The Federal Employees Retirement System (FERS) provides both a pension and supplemental defined-contribution benefits, creating a dual-layer safety net. Similarly, state and local government workers—from administrators to law enforcement—often maintain access to defined-benefit pension plans funded through employer-employee contributions.

Military Service

The U.S. military stands out with government-backed pensions for those completing at least 20 years of service. The calculation is straightforward: pension amount equals years served multiplied by a percentage of your average base pay from the highest-earning years.

Education Sector

Public school teachers enjoy some of the most secure pension arrangements in America. State-managed teacher retirement systems typically guarantee lifetime payouts after meeting service requirements, though eligibility varies by state.

Utilities and Infrastructure

Energy and water companies frequently retain pension programs, particularly where unions maintain strong bargaining power. These benefits persist because utility workers often have long tenure in specialized roles.

Construction and Transportation

Unionized sectors continue offering pensions through collective bargaining agreements. Construction workers, transit operators, and related trades negotiate pension security as part of their employment contracts.

Healthcare in Government

Nurses and healthcare professionals employed by state or local hospitals—not private healthcare companies—typically access pension plans as part of their compensation package.

Pension Alternatives: If Your Company Doesn’t Offer One

If you’re employed somewhere that doesn’t offer pensions, multiple strategies can build retirement security:

401(k) Plans

Most private employers offer these. You contribute pre-tax dollars, and companies often match contributions. Growth depends on investment performance, but the flexibility allows significant wealth accumulation.

Individual Retirement Accounts (IRAs)

Whether traditional or Roth, IRAs let you save independently with tax advantages. This option suits freelancers and those without employer plans.

Federal Thrift Savings Plan (TSP)

Available to federal employees and military members, the TSP mimics 401(k)s but with lower fees and employer matching.

Annuities

Insurance companies sell annuities that function like purchased pensions—you invest a lump sum and receive guaranteed lifetime payments.

The Bottom Line: Pension Reality in 2024

Do any companies still offer pensions? Absolutely—but they’re concentrated in government, military, education, unionized trades, and public utilities. If you’re prioritizing retirement security and have these career options available, the guaranteed income from a pension offers unmatched peace of mind compared to self-directed retirement accounts.

For those pursuing careers in other sectors, building a diversified retirement strategy through 401(k)s, IRAs, and other vehicles remains entirely viable. The key is starting early and contributing consistently.

Whether you access a pension or rely on alternative retirement vehicles, consulting with a financial advisor helps you develop a strategy aligned with your specific circumstances and retirement goals.