Tag Archives: savings plan

National Retirement Security Month

October is National Retirement Security Month, a time to learn more about the importance of saving and your potential sources of income in retirement. Even if your own retirement seems far off in the future, it’s never too early to start developing your plans for retirement.

Retirement Security

NYSLRS and Retirement Security

Check out these blog posts to learn more about how your NYSLRS pension and other sources of retirement income can provide retirement security.

  • What is a Defined Benefit Plan?
    Your NYSLRS pension is a defined benefit retirement plan. When you retire, you’ll receive a guaranteed lifetime benefit based on your earnings and years of service. It will be calculated using a preset formula rather than being limited to your accumulated contributions and your investment returns, as it would be in a 401(k)-style plan.  
  • The 3-Legged Stool: An Approach to Retirement Confidence
    Think of your retirement security as a three-legged stool — each leg represents a different income source that supports you in retirement. The first leg of the stool is your NYSLRS pension, and the second leg is your Social Security benefit. The third leg is your own personal savings, which can give you more flexibility during retirement, helping to ensure that you’ll be able to do the things you want to do.
  • Compounding: A Great Way for Your Money to Grow
    The sooner you can start saving, the better — especially if you have a retirement savings account with compounding interest. When your money is compounded, it increases in value by earning interest on both the principal and accumulated interest. But for your money to make more money, it needs time to grow.
  • Deferred Compensation: Another Source of Retirement Income
    Deferred compensation plans are voluntary retirement savings plans. Your contributions will be automatically deducted from your paycheck, and you can contribute as little as 1 percent of your earnings. It’s a savings vehicle to consider if you want to start saving extra for retirement but aren’t sure where to start.
  • Give Your Retirement Savings a Boost
    Once you’re on your way and saving for retirement, you may want to look at ways to increase how much you save. Even the smallest increase can make a big difference over time, while having a minimal impact on your take-home pay.

Remember, retirement security doesn’t just happen — it takes planning. Visit our Retirement Planning page for more information about your NYSLRS pension, including an overview of how it’s calculated, estimating your amount and how to find a description of the benefits provided by your specific retirement plan.

Are You Prepared for a Long Retirement?

As you plan for retirement, you need to think about your sources of income in retirement. However, you should also consider how long your retirement income will need to last.

Longer Life Span, Longer Retirement

These days, a 55-year-old man can expect to live for another 27.4 years, to about 82. A 55-year-old woman can expect to live for more than 30 years. These figures, derived from the Social Security life expectancy calculator, are only averages. They don’t account for factors such as health, lifestyle or family medical history.

life expectancy statistics to help plan for a long retirement

Here are some other statistics worth considering as you plan for retirement (as of the State fiscal year that ended March 31, 2022):

  • More than 37,000 NYSLRS retirees were over 85 years old;
  • More than 3,500 had passed the 95-year mark; and
  • 401 NYSLRS’ retirees were 101 or older.

Considering that many public employees can retire as early as 55, it’s possible that a fair number of them could have retirements that last 45 years or more.

Saving for a Long Retirement

Your NYSLRS pension is one source of income that you can depend on however long your retirement lasts. Employees’ Retirement System (ERS) members who retired in fiscal year 2022 are receiving an average monthly pension of $2,748. Social Security is another long-term source. The average Social Security benefit for a retired worker was $1,837 a month, as of June 2023.

Your retirement savings is a crucial asset that can supplement your pension and Social Security. In a long retirement, savings can help with rising costs and provide a source of cash in an emergency.

It is never too late to start saving for retirement. The New York State Deferred Compensation Plan is one easy way to get started. It’s a program created for New York State employees and employees of participating public agencies. If you’re a municipal employee, ask your employer if you’re eligible for the Deferred Compensation Plan or another retirement savings plan. (The New York State Deferred Compensation Plan is not affiliated with NYSLRS.)

You should also visit our Start Saving for Retirement page. You’ll find an example of how much you can save over a 30-year period, and a sample withdrawal strategy designed to provide retirement income for 20 years.

Your NYSLRS Pension Benefit

Your NYSLRS pension is a lifetime benefit that will provide monthly payments throughout your retirement. Get a head start on your retirement planning and estimate your pension in Retirement Online.

Top Five Pre-Retirement Goals for NYSLRS Members in 2018

January is a great time to set goals for the coming year. And setting pre-retirement goals is crucial in planning for a successful retirement. Here are five goals to consider for 2018:

Plan ahead for retirement

1. Choose a sensible savings plan that works for you.There are several ways to save for retirement, including starting a deferred compensation plan like the New York State Deferred Compensation Plan. An important part of developing a savings plan is to start early. The sooner you start saving, the more time your money has to grow. Check out our Weekly Investment Plan chart to see how a weekly investment can grow by age 65.

2. Track your expenses and income. Tracking your current expenses for a month or two will give you a better idea of how much you’re likely to spend in retirement and how much you’ll need to supplement your pension. Use the expense and income worksheets on our website to create a retirement budget. Be sure to include periodic expenses, such as car insurance and property taxes.

3. Request a pension estimate. If you’re within 18 months of your anticipated retirement date, it’s a good idea to request an estimate of what your retirement benefit will be. You can do this by sending us an email using our secure contact form or by calling 1-866-805-0990 (518-474-7736 in the Albany, NY area). If you are not certain that you’ve received credit for all your public service in New York State, you can submit a Request for Estimate form (RS6030) and be sure to provide detailed information about your public employment in section eight of the form. If your planned retirement date is farther away, you may want to use our online Benefit Calculator. This estimates your pension based on information you provide, so have your Member Annual Statement handy before you start, or sign in to your Retirement Online account to check your current service credit.

4. Pay off any NYSLRS loans. An outstanding loan balance at retirement will permanently reduce your NYSLRS retirement benefit. You cannot make loan payments after you retire, and the pension reduction does not go away after we recover the balance of the loan. Visit the Loans page on our website for information about making additional payments or increasing your loan payment amount.

5. Consider seeking the advice of a financial planner. Financial planners don’t manage your money, but can help you assess your present financial condition and develop a practical plan to meet your specific goals and needs. Also consider doing your own research by seeking Do-It-Yourself financial planning guides on the web.

If you ever have any retirement-related questions, please contact us.