Over the past few decades, most companies have moved away from traditional pension plans toward 401(k) plans and the like. However, if you began your work career a long time ago, or if you work for an old-line company that still maintains a pension, you may be in line for a lifetime of payments after you retire. If you work for the police department, fire department or any other public service job, such as a government job, you’re more likely to have access to a traditional pension. Some of these pensions can be quite lucrative. For example, if you served 20 years in the military, you’re likely in line for a pension worth as much as 2.5% of your highest 36 months of basic pay.
Important: The Biggest Problems Facing Social Security