How to Find a Job With Good Retirement Benefits
A job with good retirement benefits can help propel you to a secure retirement. Employer 401(k) contributions make it much faster and easier to amass a significant nest egg. And some employers continue to provide traditional pensions to long-term employees, which provide a steady stream of secure payments in retirement. Private industry employers spend an average of $1.30 per hour on retirement benefits for workers, including retirement account contributions and traditional pension plans, according to the U.S. Bureau of Labor Statistics. But these payments vary considerably by employer and industry, and some workers receive much more lucrative retirement packages. Here's how to find a job that provides generous retirement benefits.
Join the management track. Management and professional workers get an average of $3.37 per hour in retirement benefit payments. Other occupations with above average employer contributions to retirement benefits include teaching and construction. Sales and service jobs are the least likely to include retirement benefits.
Get a union job. Labor unions are often able to negotiate better retirement benefits on behalf of their members. Employers paid out an average of $4.38 per hour in retirement benefits to union employees, compared to $1 per hour for nonunion workers.
Live in the northeast or west. Workers in the northeast and west get the biggest employer contributions to retirement benefits. Employers in the Middle Atlantic states pay workers $1.72 per hour in retirement benefits. Workers get $1.55 per hour in the Pacific states and $1.51 in New England. Firms in Southern and Midwestern states pay out the least in retirement benefits, averaging $1.17 per hour in both places.
Work for a large employer. Large companies are more likely to provide generous retirement packages than small businesses. Firms with 500 or more employees spend an average of $2.81 per hour on retirement benefits. That's over a dollar more per hour than the $1.37 employers with between 100 and 499 workers spend on retirement benefits. Small companies with less than 50 employees pay out just 63 cents per hour in retirement benefits.
Work full time. Full-time workers are much more likely to be eligible for retirement benefits than their part-time counterparts. Employees who work full time earn an average of $1.65 per hour in retirement benefits, compared to just 32 cents per hour for part-time employees.
Emily Brandon is the senior editor for Retirement at U.S. News. You can contact her on Twitter @aiming2retire, circle her on Google+ or email her at ebrandon@usnews.com.
