10 Jobs Where Millennials and Gen Zers Can Still Get a Pension
Written by
Madeline Duley
Edited by
Elizabeth Constantineau
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Today’s working landscape looks vastly different from how it did 50 years ago. As times are changing, traditional pension plans and the job security that comes with them are harder to find, leaving many millennials and Gen Zers wondering if jobs with pensions are still within reach.
Despite the current shifting tides defined by gig work and side hustles, there are still sectors and opportunities that prioritize long-term financial security for their employees. Here are 10 career paths where the younger generations can find jobs with pensions that provide reliable income and contribute to building a comfortable retirement.
Teachers
The teaching profession offers a wide range of job opportunities in different subject areas and age groups, providing a stable and rewarding career. Public school teachers, in particular, often have access to pension plans.
Brookings reports that 90% of public school teachers participate in pension plans, with benefits calculated based on their salary and years of teaching experience. The median teaching salary in the U.S. is $58,869 with the full range between $40,286 and $83,610.
While specific retirement eligibility rules vary by state, many require around five years of service to qualify for pension benefits.
Police Officers
In recognition of their service, many police departments produce pension benefits for officers. These benefits offer a stable income during retirement, typically based on the officers’ years of service and station location. Being a protective service worker requires rigorous physical requirements in order to perform the role, so pension benefits are also able to help employees who can no longer meet the physical demands of their careers.
Police officers earn an average salary of $67,186, with top earners making up to $102,097. While the pension rules depend on the location, many offer benefits starting at ages 50 to 55 after 10-20 years of service.
Military Personal
The military is another job with a pension. Service members who dedicate their careers to the armed forces become eligible for a military pension after serving a minimum of 20 years. The pension amount is determined based on factors including rank, years of service, and the specific retirement system in place at the time of enlistment.
The average military salary in America is $51,584, with a wide annual range of $24,000 to $108,000.
Government Employees
Government positions, whether at the federal, state or local level, often offer pension benefits to employees. These pension plans provide long-term security and are typically based on a defined benefit structure. The specific eligibility criteria and length of service required to qualify for a pension may vary on the government agency and retirement system.
Government employees in the U.S. earn an average salary of $62,575 annually, with top earners making as much as $129,000. Typically, government employees contribute a portion of their salary to the pension fund and the retirement benefits are based on factors like years of service and final average salary.
With most government positions requiring around five years of service to be eligible for a pension, this career path offers a solid retirement plan for millennials and Gen Z.
Nurses
Another occupation where younger generations can enjoy some retirement benefits and financial security is nursing. Nursing is a critical profession in the healthcare industry, and while not all nursing positions offer pension plans, several healthcare organizations and hospitals provide pensions to their employees.Â
Nurses in the U.S. earn an average salary of $94,211, with an additional $12,000 from overtime. Pension rules and eligibility requirements vary by institution, but most nurses qualify for pension benefits after 5 to 10 years of service. The pension amount typically depends on factors like years of service and final average salary, providing nurses with a reliable income stream during retirement.
Utility Workers
Utility workers, including electrical engineers, power line installers, meter readers and valve installers, are essential for maintaining infrastructure and providing essential services.
Utility work can also be a smart move for Gen Zers and millennials. Not only does this job offer pension benefits, but it also offers younger generations other benefits. These benefits ensure a reliable income stream during retirement and help utility workers achieve long-term financial security.
Most companies require utility workers to have 5 to 15 years of service to qualify for pension benefits, though specific rules can vary. This career offers the advantage of high-paying jobs and pension plans, all without the need for a college degree. In the U.S., utility workers earn an average salary of $69,508, with top earners making up to $114,302.
Firefighters
Firefighting is a physically demanding but highly rewarding career that offers pension benefits and a path to early retirement. Firefighters put their lives on the line to protect communities and respond to emergencies. Many fire departments provide pension plans to their firefighters as a way to reward their service and dedication.
Alongside the pension benefits, firefighters also benefit from healthcare coverage and generous retirement packages. The combination of early retirement, healthcare benefits and a stable income stream makes firefighting an attractive career choice for those seeking a pensioned job. Firefighters earn an average base salary of $55,689 per year, with pay ranging from $38,434 to $80,691, depending on their role and years of experience.
Postal Employees
Working for the United States Postal Service offers the unique advantage of pension benefits for eligible employees. Postal workers, including mail carriers, clerks and other positions, can become eligible for a pension after five years of service. This relatively short vesting period allows younger employees to establish retirement benefits early in their careers.
Additionally, if postal employees transition to another federal government job, they can often transfer and combine their pension benefits. Alongside the pension plan, postal employees also have access to healthcare benefits, making it a comprehensive package. Postal employees earn an average salary of $42,463 annually, with pay ranging from $27,058 to $66,637.
Air Traffic Controllers
The Federal Aviation Administration offers a pension plan for air traffic controllers that provides competitive retirement benefits. Air traffic controllers often enjoy a higher income compared to many other professions, with a salary range that reflects the level of responsibility and specialized skills required. The salary range for air traffic controllers is between $50,897 and $81,724 with the average salary at $54,549.
Because air traffic controllers must remain focused and react quickly to conditions that change frequently, this job can be stressful. For those looking for an early retirement, becoming an air traffic controller might just be the job for you because the FAA requires controllers to retire at age 56.
Construction
The construction industry offers diverse career paths and can be a promising venture for millennials and Gen Zers seeking a job with a pension. While not all construction jobs provide pensions, many positions within unionized construction trades offer access to pension plans. These plans typically consider factors such as years of service, contributions and other qualifying criteria.
Unionized construction workers can also benefit from cost-of-living adjustments, ensuring that pension payments keep pace with inflation. Additionally, construction careers offer the opportunity to develop valuable skills, earn competitive wages and contribute to a secure retirement. The average construction worker’s salary in the U.S. is $39,942, with the salary range falling between $31,897 and $42,348.
Final Take
Choosing jobs with pensions can provide younger generations with financial stability and peace of mind. From public service roles to healthcare, these careers stand out as opportunities for long-term security in a changing workforce.
FAQ
Here are the answers to some of the most frequently asked questions about jobs with pensions.- What types of jobs usually have pensions?
- Public service, healthcare and government jobs -- like teaching, firefighting, police work and nursing -- often offer pensions. Unionized trades and roles like air traffic controllers also provide them.
- Is a pension better than a 401(k)?
- Pensions guarantee income in retirement, while 401(k) plans depend on market performance. Public service jobs often provide reliable pensions for long-term security.
- What companies pay the best pension?
- Government agencies, public schools and unionized trades often provide the best pensions, especially for jobs like utility workers and military personnel.
- Are jobs with pensions worth it?
- Yes, they provide stable retirement income and financial peace of mind, especially in careers like nursing, teaching or government work.
Pay data is accurate as of Nov. 15, 2024, and was sourced from Zippia, ZipRecruiter, Salary.com and Indeed.
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