7 Best First Jobs That Come With Retirement Benefits
Written by
Jordan Rosenfeld
Edited by
Gary Dudak
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First jobs, with or without a college degree, often mean starting at the bottom of the workforce with lower pay and meager benefits.
A college degree can confer slightly better entry-level employment, but it can be challenging to find first jobs that also come with retirement benefits such as a 401(k). Young people, for whom retirement is a long way off, may not even think to look for these perks when searching for that first job.
However, there are several good first job options that take your future retirement into consideration and offer good benefits including retirement accounts. Read on to find out which first jobs can also help set you up for your future.
Chain Restaurants
If you thought those corporate restaurant chains are just fun places to go to on a Friday night, know that they can also be a viable option for a solid first gig. This is especially true if you are interested in the hospitality or food service industry, according to Logan Shooster, VP of strategic growth at Shooster Holdings.
“While benefits packages can vary depending on the specific franchise or location, many chain restaurants, like Outback Steakhouse, offer impressive employee benefits,” Shooster said.
These benefits typically include healthcare coverage, employee discounts, flexible scheduling, 401(k) and company advancement opportunities. He explained, “No position necessarily needs a college degree to take on, especially for those professionals who already have food or customer service experience.”
Government Jobs
Jobs in government are great starters, according to Rhett Stubbendeck, CEO and founder of Leverage Planning.
“They usually come with pension plans and sometimes even 401(k) matching. One of my first clients at Leverage secured a local government job and was amazed by the pension benefits, which were much more generous than what is typically found in the private sector,” he said.
Corporate Conglomerates
Other kinds of big corporations also can provide “top-notch” benefits, Stubbendeck said.
“For example, tech giants like Google or traditional corporations like ExxonMobil often match 401(k) contributions generously. They sometimes throw in additional perks like profit-sharing, which I always point out to our clients as a big win.”
Financial Institutions
Banks and financial firms aren’t just about managing money; they’re also great at offering their employees solid retirement plans.
“Places like Fidelity and Charles Schwab not only match 401(k)s but might also share profits, boosting your retirement savings significantly,” Stubbendeck shared.
Health Sector Employers
Additionally, if you can get in early on jobs at hospitals or medical groups — industries that always need more helping hands — they generally offer great 403(b) plans with employer matching
Subbendeck said, “At Leverage, we’ve seen many healthcare professionals thrive with these benefits.”
The Public Sector
If you’re looking to begin your career on the right foot, one of the best opportunities for creating a strong foundation for retirement security is working in the public sector, according to Jonathan Price, national retirement practice leader at Segal.
“In most states, teachers are enrolled in pensions, plus 457 and/or 403(b)plans — which are the public sector equivalent to 401(k) plans,” he explained. “And in almost all states, all public sector employees, including police officers and firefighters, are in defined benefit pension plans.”
Union Jobs
Finally, there are many union jobs that provide a strong foundation for retirement security by providing a pension plan, Price said. “According to the Bureau of Labor Statistics, 79% of civilian unionized workers have a defined benefit pension plan compared to 17% of non-union civilian workers.”
These types of career opportunities often come with an added bonus of on-the-job training. Price said, “For example, unions in the building trades often provide apprenticeship opportunities.”
He suggested that if you’re unsure of your career plans, starting with a teaching or union position is a great way to build up some positive career experiences while helping your future self by providing a financial foundation on the road to long-term financial security.
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