You shouldn’t solely think about the present when finding a job. One eye must be on the future as well; you need to ensure your job rewards you when you retire. This could mean it rewards you with an early retirement, though your main concern will be the retirement benefits provided by the role.
In other words, does the job provide a good pension plan? Will you have enough money to live comfortably on your pension alone when you retire? If the answer is yes, then you’re in for a treat. You should still save for retirement as well, but being able to rely on your pension takes a lot of the financial stress away.
With that being said, which jobs have the best retirement benefits? We’ll caveat this by saying it largely depends on the company providing the benefits – but we can still spot a few jobs and roles that traditionally and commonly have great pensions:
Registered Nurse
Being a registered nurse – or a healthcare provider in general – usually means you get the best benefits packages. It’s a strange one as the wages you’re paid may not reflect the work you put in. Yet you’re given one of the biggest pensions to reward you when you eventually retire.
There’s a huge demand for nurses and healthcare providers as the country will always have sick people. Becoming a nurse isn’t all that challenging either. You’ll need to complete a series of courses to gain the right qualifications before then adding things like a BLS certification to your resume so you can perform CPR and other emergency life-saving acts. It’s a role anyone can do, but you need the right mindset.
You also need to find a job in a prosperous hospital with a union. This is mainly why registered nurses are on this list; the majority are unionized and the unions are responsible for getting good pension plans and retirement benefits in place. Keep that in mind if you go down this career path.
Teacher
This has always been a traditional profession with traditional pension plans in place. Teachers receive better benefits than most other occupations, though pensions have decreased over the last few years. This is nothing new; it’s the case throughout different industries due to the economic state. And yet, teachers still get better pensions and retirement benefits even with this decline.
Again, it’s largely down to the presence of trade unions. Around 90% of teachers are enrolled in a union, which helps them get the retirement benefits they need. Pensions are still pretty weighty – though choosing which state to work in can make a huge difference. According to District Administration, Connecticut is the best state for teachers with an average salary of just over $81,000 and an average teacher pension of $53,452.
By comparison, a state like Utah only gives an average pension of just under $18,000 – so you should choose where you wish to work wisely! In any case, teaching jobs are in high demand. It shouldn’t be difficult to find what you’re after or to get a secure job with no risk of being fired, and plenty of room to climb the career ladder.
Military
Most people should know that military jobs provide excellent retirement pay and benefits. It’s one of the biggest draws of a job like this; everyone knows the risks involved with being in the military, so there needs to be something to tempt you to sign up. A good pension with an early retirement is a great way to encourage more workers to join the military.
US News states that the average military pension is around $30,000-$35,000 per year for a typical enlisted person. You’re eligible for this after just a few years in the military. The exact amount you’re paid will depend on your rank and the specific military pension plan you choose – of which there are many!
It’s also reported that this figure can double if you’re an officer. This means you earn enough through your pension alone to live very comfortably. A lot of people in the military will retire early and enjoy something of a semi-retirement. This is when they take the smaller pension and continue to work part-time elsewhere. It’s handy if you want to get out of the military early or were perhaps forced to retire due to medical grounds.
Speaking of which, military personnel can enjoy more than just retirement pay from this job. They may also get survivor benefits, medical benefits, and a host of other benefits packages.
Construction
Believe it or not, construction jobs are some of the best for retirement benefits and pensions. With an average base salary of $40,000 per year, these jobs are hardly the most well-paid out there. However, they almost all come with a 401(k) plus a pension or retirement plan of sorts.
Once more, this is down to the presence of trade unions in this sector. Construction jobs are very hard and physical with a lot of potential health risks to worry about. As a result, unions are required to ensure individuals are being paid a fair amount while also enjoying a well-balanced life at work. Without the unions, many construction workers would be taken advantage of and get very little for the work they put in.
There are lots of unions for construction workers and they provide benefit plans to opt into. Every construction worker is encouraged to become a union member and take full advantage of these plans. They’ll provide workers with additional income in retirement by taking money from their salary and contributions from their employer to build a retirement fund. The good thing about this line of work is that anyone can do it. That’s not meant as a slight towards the construction industry, it’s simply the truth. There usually aren’t many requirements for construction jobs. As long as you’re willing and can handle physical labor, you could be taken on and trained internally.
Police Officer
Jobs in the police force are in high demand, though they receive fewer applicants each year. We can think of multiple reasons why this might be, but that’s a discussion for another time. For now, let’s focus on the average police officer pension – which, according to World Population Review, ranges from $36,859 in Delaware up to $63,900 in Arizona.
It’s a very beefy retirement plan – and there’s an additional benefit that comes with a police pension. Compared to other jobs in different industries, the retirement age is much lower. The average age for retirement is 65, though a lot of people in different jobs aren’t retiring – nor are they allowed access to their pension funds – until they’re 67. In the police force, many states lower the retirement age to 50. Some have it as 55, while others don’t set an age, but do it based on years of service. For instance, in Nevada, you can retire at any age with 30 years of service or you can retire at 50 with 20 years of service.
Don’t underestimate the advantage of having a low retirement age like this. It may not seem like a huge jump when written on paper, but even the ability to retire at, say, 60 compared to 65 is a huge deal. That’s five extra years of your life to spend doing whatever you want before you get too old to enjoy certain things. Hell, if you’re retiring in your 50s you’ve got SO much time to travel or explore new things.
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Electrician
Much like construction workers, electricians are in fairly high-risk jobs. When your daily routine involves playing around with live electricity, anything can happen. Sure, steps are taken to mitigate the risks, but they still exist – and that’s why electricians and electrical engineers often have a fantastic pension plan.
Without wanting to play the same tune again, the reason behind the strong pensions in this industry is the presence of unions. Union Pay Scales displays a good list of electrician salaries and pension contributions to show you what you could put away each week in this line of work. Many of the pension schemes and retirement plans here are extremely prosperous and you can put away lots of money for your golden years.
You’re not forced to break down barriers to become an electrician either. It’s one of those jobs that requires formal training, but there’s no need for a college degree or any form of higher education. The barriers for entry are almost non-existent. It’s often a popular choice for individuals who want a practical career from an early age.
You should always keep one eye on the future and how you’ll cope when you retire. Choose careers wisely to ensure you’re getting as many benefits as possible. Yes, you can get any job and pocket a 401(k) plus a private pension – but you can do this with all the jobs above PLUS the benefit of a provided pension plan. The more money you have in retirement, the better your latter years will be.
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