The Highest and Lowest Pensions in the U.S., According to New Data

New federal survey data reveals a striking divide between America’s public and private pension systems. Among people aged 65 and older receiving pension income, former federal workers collected the highest median benefit, while recipients of private pensions and annuities received the lowest.

The gap is not small. The typical federal government pension was nearly three times the typical private pension, according to an analysis of the March 2025 Current Population Survey covering income received during 2024.

The findings offer a revealing look at who still receives traditional retirement income in the United States and how dramatically benefits can differ based on a worker’s career.

Federal government pensions rank highest

Federal government pensions topped the list with a median annual benefit of $33,310, equal to about $2,776 a month. That means half of federal pension recipients aged 65 and older received more than $33,310 in 2024, while the other half received less. A median is different from an average because unusually large payments do not pull the number upward as strongly.

Federal retirement benefits can reflect decades of government service, salary history, and the rules of the retirement system that cover the worker. Some longtime federal retirees remained under the Civil Service Retirement System, which generally did not include Social Security coverage. Their pension was designed to serve as a larger share of their retirement income.

Still, $33,310 is not exactly luxury-retirement money. It works out to less than $2,800 a month before taxes, insurance premiums, and other deductions. In an expensive city, that check can disappear quickly once housing, food, and medical bills arrive.

Military pensions take second place

Military pensions recorded the second-highest median benefit at $26,310 a year, or about $2,193 per month. Military retirement differs from many civilian pensions because eligibility and payments are tied closely to years of service, retirement plans, and military pay. Career service members may also qualify for other benefits, but those programs should not automatically be included in their pension payment.

The data lists veterans’ benefits separately. That distinction matters because a veteran may receive disability compensation or other assistance without receiving a military retirement pension.

For those who qualify, however, a military pension can provide a dependable monthly income long after active service ends. The median military benefit was almost $15,000 higher than the median private pension reported in the same data.

State and local government pensions come next

Retired state and local government workers received a median pension of $24,930 a year, which equals roughly $2,078 per month. This category includes many former teachers, police officers, firefighters, and other public employees. The exact payment can vary sharply across retirement systems because pension formulas, employee contributions, salaries, and years-of-service requirements differ by state or occupation.

Some state and municipal employees also worked in positions that were not covered by Social Security. In those cases, a larger pension may have been intended to replace retirement income that other workers receive through a combination of Social Security and an employer pension.

Public employees are also far more likely to encounter traditional defined-benefit plans than private-sector workers. In March 2025, only 14% of private-industry workers had access to a defined-benefit retirement plan. Meanwhile, 99% of full-time state and local government workers had access to some form of employer retirement benefit.

That difference helps explain why pensions remain closely associated with public-sector careers, even as many private employers have shifted workers toward 401(k)-style accounts.

Veterans’ benefits fall below major public pensions

The median amount received through veterans’ benefits was $14,790 annually, or about $1,233 a month. Veterans benefits are not technically the same thing as an employer pension, but they were included in the retirement-income comparison. Payments can involve disability compensation, survivor programs, needs-based pensions, and other forms of assistance.

Because veteran programs serve people with very different service records, health conditions, and eligibility statuses, the median payment should not be interpreted as a standard benefit available to every veteran. Even so, the figure provides useful context. The typical veteran’s benefit was less than half the median federal government pension and about $10,000 below the median state or local pension.

Private pensions rank lowest

Private pensions and annuities landed at the bottom, with a median benefit of $11,440 per year, or approximately $953 per month. That is $21,870 less per year than the median federal pension. Put another way, the median federal government pension was almost 2.9 times the median private pension.

The category includes pensions from private companies and unions, as well as annuity income, covering a wide range of payment arrangements. Some retirees may receive a small pension from a job held only for part of their careers. Others may receive additional income from Social Security, savings, investments, or a spouse’s benefits.

Traditional private pensions have become much less common for current workers. While 70% of private-industry employees had access to defined-contribution plans such as 401(k)s in March 2025, only 14% had access to defined-benefit pensions offering a predetermined retirement payment.

That shift has transferred more responsibility to workers. Instead of an employer promising a monthly check for life, many employees must decide how much to save, how to invest it, and how quickly to withdraw it after retiring.

What the numbers reveal about retirement in America

Across all pension categories, the median pension income for Americans age 65 and older was $16,460 in 2024, or around $1,372 per month. Only about 30% of older Americans received pension income at all. Social Security remains a separate and essential source of retirement income. The average retired worker was receiving about $2,075 per month in Social Security at the beginning of 2026, though individual payments vary based on lifetime earnings and the age at which benefits are claimed.

The pension rankings do not tell you exactly how comfortable each group is. A retiree receiving a smaller private pension may also have a large 401(k), substantial Social Security benefits, or investment income. A public retiree receiving a larger pension may have limited Social Security coverage and few other assets.

Still, the divide is difficult to ignore. America’s highest median pensions remain tied to long careers in federal, military and state or local government service. The lowest payments appear in the private system, where the guaranteed monthly pension has increasingly become a benefit from another era.