If you are considering a job change in the near future, take a close look at the retirement benefits certain positions offer.
There has been a lot of discussion about pensions and their disappearance from retirement-benefits plans. A 2014 report released by Towers Watson found that only 24 percent of Fortune 500 companies still offered any type of defined benefit plan to their newly hired employees by the end of 2013, with nearly two-thirds of the 24 percent offering cash balance plans. Instead, these employers have adopted defined contribution and hybrid plans.
Yet, it is possible to find a job that still offers some sort of pension.
Many gas and power companies offer defined benefit plans to new employees, and they have kept their retirement benefits consistent between union and nonunion workers.
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The Towers Watson analysis also found that 46 percent of insurance companies offered hybrid and defined contribution plans, and 20 percent offered traditional defined benefit and defined contribution plans in 2013.
If you get a job as a public employee — such as a police officer, firefighter, etc. — you have a good chance of being enrolled in a state pension program. According to Monster.com, a state pension program could possibly “pay you up to 90 percent of your salary at retirement.”
Currently, troops can retire and receive their pensions after 20 years of service. The Military Times, however, reported in January that a panel proposed a hybrid system that would start 401(k)-style investment funds with government contributions for lower-ranking troops.” According to USA Today, the new plan is expected to be in place by October 2017.