Employer involvement in pension plans has declined dramatically since the 401(k) was introduced in the late 1970s.
6 Defined contribution programs, such as 401(k)s, save businesses money while also reducing risk and requiring less government oversight. 401(k)s, on the other hand, give no assurances concerning income during retirement, unlike pensions.
Unsurprisingly, pensions continue to be a popular perk among employees. However, if you want a job with a pension, you must search carefully. Certain sectors and companies are more likely than others to provide pensions.
Government employees are much more likely than private-sector employees to have access to pension schemes. According to BLS statistics, 75% of state and local government employees are enrolled in pension schemes. 7
The Federal Workers' Retirement System (FERS) covers federal civilian employees in the United States and includes a pension plan as one of its perks. Employees who are FERS-eligible may also participate in the Thrift Savings Plan (TSP), which is comparable to a 401(k) (k). 8
Among private-sector employees, union members are more likely to have pensions than non-union members.