We all dream of retiring comfortably one day, with enough money to support a life of relaxation, travel, or pursuing dreams we’ve had on hold. But just how we will get to that type of golden years lifestyle is often in question. Will there even be Social Security left? Are we putting enough into our 401(k) plans? Will our employers really have money to pay out the pensions they promised over the years?
When it comes to pensions, the reality is that companies obligated to pay them out are collectively coming up short by trillions of dollars. As a result, most of these employers have decided to freeze their pension plans and switch over to 401(k) plans, where the employee is on the hook to plunk down the majority of the money saved.
Between 1998 and 2015, the percentage of employers still offering traditional pension plans to new hires fell from 50% to 5%, according to benefits advisory firm Willis Towers Watson. Here we’ll take a look at 13 big companies that are surprisingly still funding pension plans and offering them to new hires once vested. Following that, we’ll see two of the latest big companies joining the ranks of those freezing their pension plans.
The old slogan “Have a Coke and a smile” may hold even more meaning for employees who are smiling because they get a pension. Coca-Cola, based in Atlanta, employs 123,000 people and provides everyone with a pension plan – including new hires once they are vested. The retiring employee gets a life annuity at his or her normal retirement age. Coca-Cola employees on Glassdoor reported becoming vested in the pension plan after two years with the company.
Next: A maker of personal care and baby products