Once upon a time in the U.S., a pension plan was standard with most jobs.
Corporations began offering pensions in the late 1800s as a way to reward loyalty and longevity with a company. American Express, for example, became the first company to offer a corporate pension in 1875, rewarding workers who had been with the company for 20 years or more, reached age 60, and were recommended by management.
Banks and railroad operators then began to adopt pensions soon after, and later on, they became mainstream with the help of labor unions. By the end of the 1950s, about half of the private-sector workforce had a pension.
As 401(k)s and other defined-contribution plans became more popular starting in the 1980s, they started to replace pensions.
But there are still some careers that offer pensions. Let's look at just four of them.
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1. Teachers
One of the most accessible and common jobs to offer a pension is that of a schoolteacher. If you're teaching in a public school, you're working for the government, and public-sector benefits tend to be better than those in the private sector. That includes pension plans.
Teachers are also typically members of a union such as the United Federation of Teachers, which helps negotiate benefits like pensions for their members.
Teachers' pensions will vary from state to state, and some are less generous than they used to be. In Illinois, the median pension benefit for teachers is $52,000 per year, while in New Hampshire, it's just $7,000, according to teacherpensions.org.
2. Registered nurses
Working as a nurse is another career that's well known for offering stable benefits. Yet keep in mind: this career is not for the squeamish.
Nurses tend to get defined-benefit pension plans, meaning your employer, usually a hospital, will guarantee a specific income in retirement using a predetermined formula based on your salary when you retire, the number of years you worked with that employer, and your age.
If you choose to leave a job as a nurse, typically you will be able to take your current pension as a lump sum or receive an annuity later on, though you will have had to work a minimum number of years to receive it.
3. Utility workers
Utility companies cover everything from telecommunications to electrical lines to natural gas and more, and there is a wide range of jobs available, including a lineman for a phone company, an electrician, or a meter reader.
Traditionally, a pension plan is one of the benefits of these jobs, and according to the Bureau of Labor Statistics, 76% of utility company employees receive a pension.
And utilities tend to offer reliable employment as they have stable business models. In fact, many operate as regulated monopolies, meaning they charge pre-negotiated rates to their customers and often don't have any competitors.
If you're looking for reliable employment, it's hard to beat utilities.
4. Police officers and firefighters
Like teachers, police officers and firefighters offer another good example of public-sector jobs that offer good benefits, including pensions. And like nursing, these jobs are not for everyone, as they can be quite dangerous.
That said, some police officers get a pension after just 20 years on the job, making this career hard to pass up if you're looking for an early, well-funded retirement.
Most police officers' pensions pay 50% of their base salary, and if you're working somewhere where you can retire after 20 years, you can take that pension and use it to pad your income from a second career, or to help you start a business or fund another endeavor.
Having a pension and early retirement gives you lots of flexibility in a way that other careers can't match.
Whatever career you choose, it pays to consider the available retirement benefits. If you're not getting a pension, see if your employer offers a 401(k) and what kind of match it provides. Those benefits can be worth much more than you think once you're ready to retire.
