Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTDaniel LibertoSun, June 7, 2026 at 5:05 PM GMT+2 4 min readMany retirees still receive pension income, even as fewer workers today have access to these plans.Credit: andresr / Getty ImagesKey TakeawaysLess than 30% of today’s workers have a defined benefit pension, yet more than half of current retirees receive pension income.Public-sector workers are more likely to have pensions than private-sector workers, and the benefits they pay are typically much larger.Most retirees piece together income from multiple sources, and for those without a pension, personal savings will need to be higher.Traditional pensions, where employers guarantee their workers a fixed monthly paycheck for life in retirement based on their salary and years of service, are widely considered a thing of the past.But the reality is more complicated. While these highly sought-after defined benefit (DB) plans are no longer an option for most of today’s workers, for retirees they remain a common source of income.Pensions Are Much Less Common for Workers TodayOnly 29% of American workers currently have an employer-sponsored DB pension, according to the Federal Reserve’s "Report on the Economic Well-Being of U.S. Households in 2024."But that figure masks a sharp generational divide. Among workers aged 18–24, only 4% have a pension, while the share rises with age until reaching 54% for workers age 65 or older.This pattern reflects a decades-long shift away from DB plans. Beginning in the 1980s, many employers began transitioning workers from pensions to 401(k)-style defined contribution (DC) plans, essentially shifting the responsibility of funding retirement from companies to their employees.The divide between the public and private sectors is especially stark. According to the Bureau of Labor Statistics, just 14% of private-sector workers had access to a pension plan as of March 2025, compared with 86% of state and local government workers. Teachers, police officers, and firefighters have largely kept the traditional pension model alive, while corporate America has moved on.Why This MattersThe shift away from pensions has lasting consequences for retirement security. Workers without them must rely more heavily on their own savings—and take on the investment risk that comes with it.Yet More Than Half of Retirees Still Receive Pension IncomeDespite the reduced availability of pensions in today’s workplaces, pensions remain very much alive for older generations who are already retired. The Fed reports that 54% of Americans aged 65+ have a pension. A survey conducted by The Employee Benefit Research Institute (EBRI) and Greenwald Research similarly puts the figure at 56%.That share will certainly shrink over time. Many of today’s retirees worked when pensions in the private sector were the norm. With younger generations having far less access to DB plans, pension income will become increasingly rare as these younger Americans approach retirement age.Terms and Privacy PolicyPrivacy & Cookie SettingsMore Info