I will have 20 years in teaching in 2019. I will be 58 years old. Moneywise, what is the difference between retiring at 58, 59 or 60 years old? I do have a 403(b) already going. Thank you.
As far as your CalSTRS pension is concerned, there are many variables that figure into the amount you will receive, including your age, the number of years of service credit you have, your final compensation and whether you qualify for a retirement incentive program or reduced benefit election. CalSTRS provides information to help you make an informed choice about when to retire. You might want to attend a CalSTRS Retirement Check-Up workshop, contact CalSTRS at 1-800-228-5453 or visit www.calstrs.com.
It is worth noting that by working longer and continuing to contribute to your 403(b) account, you will have likely have more available to supplement your CalSTRS pension in retirement. This is not only due to the additional contributions to the 403(b) account, but also due to the fact that you are likely delaying the starting point at which you begin to tap into your account.* The combination of additional contributions and a couple of additional years in which no assets are distributed from the account can be powerful in terms of providing for more resources available to you in retirement.
* Please note that in some instances a 10% IRS penalty may apply on amounts withdrawn from a 403(b) account before age 59 1/2.
Back to FAQs