Getting the most from your union retirement plan

You can begin by learning how multiemployer retirement plans work, creating a retirement plan, and regularly reviewing your statements. Developing good budgeting habits, building your emergency savings, and estimating how much income you’ll need in retirement can also help you stay on track.

Learn the ins and outs of your retirement benefits

As a union member, it’s very likely (94% likely, in fact) that you have access to retirement benefits paid by your employer. Only 68% of nonunion workers have that same access. When you start working for a company that participates in a multiemployer plan, you’re often automatically enrolled. You can contact your fund office to learn more about your plan and request a summary plan description that outlines the benefits.

There are two types of retirement plans that your union may offer:

• Defined benefit plan—This is a traditional type of pension plan. Your employer (or employers) makes regular contributions on your behalf, using a formula based on your years of service, hours worked, pay, or other factors negotiated by your collective bargaining unit. The money is invested and managed for you, and your savings grow tax deferred over the course of your career. You don’t pay any taxes on the money until you make a withdrawal, ideally at retirement, when your tax rate may be lower. 
• Defined contribution plan—Some unions also offer a defined contribution plan to help you save more for retirement. Your savings and any earnings grow tax-deferred until you withdraw your money. Contributing to the plan gives your money time to grow by compounding, which is when the interest you earn on your savings is reinvested, so you get additional money added to your account. 

No matter which type of plan your union offers, you get regular statements, so you can see your balance. You can also view your account online anytime.

Retirement planning for union members

If you feel stressed about planning for retirement, you’re not alone. Last year, more than 40% of union members said they felt stressed, and 71% reported that an employer’s financial wellness program could help reduce stress.¹ Building a few smart money habits now can save you a lot of stress later. You can use planning or budgeting tools offered by your retirement plan or other trusted sources to help you manage your finances today and get a feel for how much you’ll need in retirement. 

It’s also a good idea to set up an emergency savings account and include saving for unexpected expenses in your budget. If an emergency expense comes up, you don’t have to put it on a credit card or borrow money to cover the cost. 

Looking ahead, you also want to take some time and calculate how much you can expect to get from your retirement plan(s) and Social Security. If your estimated expenses look higher than your income, you still have options, such as saving a little more or contributing to an IRA to help close the gap.

Early retirement for union members

Many union jobs involve hard physical work, so you may be wondering whether you can afford to retire early. While pension plans typically don’t start paying benefits until age 60 or 62—and Social Security generally isn’t available until you reach age 62, at the earliest,—having other savings may help you bridge those years.

Staying the course

No matter how your union retirement plan is designed, it’s there to help you prepare for retirement. Be sure to find out more from your fund office about how your plan can help you get ready for the retirement you want. 

FAQs

How do union retirement plans work?

As a union member, you’re very likely to have retirement benefits—about 94% of union workers do, compared to 68% of nonunion workers. Unions often automatically enroll members in the plan. There are two types of plans that union members may be offered: defined benefit (also known as a pension plan) and defined contribution (also known as a 401(k) plan). Both can offer certain tax advantages.

What’s the difference between a union pension and a 401(k)?

A union pension plan, also called a defined benefit plan, guarantees you a monthly benefit in retirement based on factors such as your years of service and pay. A 401(k), or defined contribution plan, works differently. You decide how much to contribute from each paycheck, and your retirement savings depend on contributions and investment performance. Pensions offer predictable income, while 401(k)s give you more control and flexibility.

Can union workers retire early?

Early retirement may be possible for some union workers, especially those in physically demanding jobs, but it takes planning. Pension benefits often don’t start until age 60 or 62, and Social Security begins at 62 at the earliest. Having extra savings—such as money in a 401(k) or IRA—can help cover expenses if you want or need to retire before full benefits begin.

How are multiemployer pension plans funded?

Multiemployer pension plans are funded by contributions from multiple employers who are part of the same union collective bargaining agreement. Each employer pays into the plan based on negotiated terms, such as hours worked or wages. Pooling contributions this way helps spread risk across many employers and keeps the plan going even if workers move between union jobs within the same industry.

What happens to your union pension if you change jobs?

If you change jobs but stay within the same union and covered plan, you may continue earning pension credit. If you leave union-covered work altogether, you typically keep the benefits you already earned if you’re vested. Many union plans offer immediate eligibility and 100% vesting. Your pension stays in the plan and can begin paying out when you reach retirement age, even if you no longer work for a union employer.

1 In June 2025, Manulife John Hancock Retirement commissioned our eleventh annual financial resilience and longevity survey with the respected research firm Edelman Public Relations Worldwide Canada (Edelman). An online survey of 2,534 Manulife John Hancock Retirement plan participants was conducted between 5/9/25 and 6/2/25 and 512 retired Americans, sourced through Angus Reid’s research panel, was conducted between 5/9/25 and 6/2/25. The objectives of the study were to learn more about individual stress levels, their causes and effects, strategies for relief, and to provide custom insights around how retirees are faring in retirement. Manulife John Hancock Retirement and Edelman are not affiliated, and neither is responsible for the liabilities of the other.