New York, US:
While much of the workforce has shifted toward 401(k)s and other defined contribution retirement plans, traditional pensions are far from extinct in 2025. Defined benefit pension schemes, once the hallmark of American retirement security, have been steadily disappearing in the private sector for decades. Yet, they remain strong in certain fields, offering employees the guarantee of lifetime income after retirement.
The Decline of Traditional Pensions
Over the last thirty years, private companies gradually scaled back pension benefits due to rising costs, longer life expectancies, and market volatility. Today, fewer than 15% of private industry workers have access to pensions. Instead, most employers have turned to 401(k)-style plans, which shift investment responsibility from the company to the employee.
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Despite this, millions of workers in the United States still benefit from stable pension programs—especially those in government, military, and unionized sectors. These jobs not only promise steady income during retirement but also add critical security at a time when financial uncertainty and inflation remain pressing concerns.
Industries Where Pensions Still Exist
In 2025, pensions continue to thrive in jobs that rely heavily on stability, tradition, and long-term service. The most common pension-providing roles are clustered in government and public services, but certain private-sector positions remain as well.
Federal Government Jobs
Federal employees are among the largest group of American workers guaranteed pension benefits. Covered under the Federal Employees Retirement System (FERS), they receive:
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A calculated lifetime monthly benefit based on years of service and salary.
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Access to the Thrift Savings Plan (TSP) as a supplemental retirement fund.
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Additional Social Security benefits.
Positions such as postal workers, federal law enforcement officers, and administrative staff remain eligible for these pensions.
State and Local Government Jobs
State and municipal employees also maintain access to pensions through long-standing state-run retirement systems. These include:
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Teachers and public school staff.
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Firefighters.
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Police officers.
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City and county government workers.
Though some state pension systems face funding challenges, pensions remain a core incentive for public sector employment, balancing lower average salaries with strong retirement assurance.
Military Service
The U.S. military continues to offer one of the most stable pension structures in the nation. Members who serve at least 20 years are entitled to lifetime pension benefits, calculated on rank and years of service. Additional health and survivor benefits make military retirement one of the most secure systems available.
Unionized Industries
Unions still play a pivotal role in protecting pensions for private-sector workers. While reduced compared to decades past, certain industries remain deeply tied to collective bargaining agreements that preserve defined benefit plans. These include:
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Airline pilots and flight attendants under major carriers.
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Railroad workers under agreements with the Railroad Retirement Board.
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Utility and energy company employees in long-standing union contracts.
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Construction and skilled trade workers under specific labor unions.
Healthcare Sector
Select hospital systems and healthcare institutions continue offering pensions to retain long-term employees. While many shifted to 401(k) structures, some non-profit hospitals and Catholic-affiliated healthcare systems keep pensions intact for nurses, technicians, and administrators.
The Full List of Jobs Still Offering Pensions in 2025
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Federal government employees (postal workers, law enforcement, administrative agents).
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State government employees (teachers, public school staff, administrators).
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Local government employees (firefighters, police officers, city/county workers).
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U.S. military service members (all branches, with 20+ years of service).
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Unionized airline workers (pilots, attendants, ground staff under contracts).
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Railroad workers (covered by specialized retirement agreements).
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Utility workers (electric, gas, water, energy sector jobs tied to strong unions).
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Some healthcare professionals (at select hospitals and religious-affiliated institutions).
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Skilled trades under union protections (construction workers, plumbers, electricians under organized labor agreements).
Why Pensions Still Matter
For employees in these sectors, pensions remain an invaluable benefit. Unlike 401(k) savings, which depend heavily on market performance and personal contributions, pensions guarantee a fixed retirement income. This financial certainty makes these roles attractive to those seeking job security and long-term stability.
In the face of inflation, rising housing prices, and uncertainty over Social Security’s future, the enduring pension plans in these jobs stand as a vital lifeline. They also represent one of the last vestiges of guaranteed retirement income in a landscape where personal responsibility increasingly outweighs employer support.
FAQs
1. Are pensions completely gone in the private sector?
No, while rare, some private companies—especially those with unionized workforces like airlines, utilities, and railroads—still provide pensions to longtime employees.
2. Do all government workers still get pensions?
Most federal, state, and local government employees continue to receive pensions, though new hires in some states are offered hybrid systems combining pensions with 401(k)-style options.
3. Can part-time or temporary workers get pensions?
In most cases, pensions are limited to full-time, long-term employees. Temporary, seasonal, or part-time staff are usually ineligible.
4. Has the value of pensions changed in 2025?
Many pension plans have been adjusted for inflation, though some state funds face financial strain. Nonetheless, they remain a significant retirement benefit.
5. Which job offers the strongest pension in the US?
The military stands out for providing one of the most comprehensive pension systems, including healthcare benefits and survivor protection, after 20 years of service.
