Age Milestones for Retirement Planning

age milestones

Whether you’re 22 or 52, you should be planning for retirement. Your NYSLRS retirement benefits will be based on your tier, years of service and final average earnings. For most members, age is also an important factor in your NYSLRS benefits and it’s a factor for Social Security and retirement savings strategies as well. So, as you plan for retirement, consider these age milestones.

Age Milestones

Under 50: It’s never too early to start saving for retirement. Even modest savings can add up over time as investment returns grow and interest compounds.

50: The Age 50 and Over Catch-Up provision allows you to save more pre-tax dollars in a retirement account starting in the calendar year in which you turn 50.

55: The earliest age most NYSLRS members can begin collecting a service retirement benefit. (This does not apply to members in special retirement plans.) Your pension may be permanently reduced if you retire before your full retirement age.

59½: The age you can start withdrawing money from a tax-deferred retirement savings plan, such as an IRA, without facing a potential federal tax penalty. (The penalty does not apply to New York State Deferred Compensation Plan savings if you are retired or have left public service.)

62: Full retirement age for your NYSLRS benefit if you are in Tier 2, 3, 4 and 5 or PFRS Tier 6. Earliest age you can begin collecting a Social Security pension, but the benefit would be reduced. For more information about Social Security, read When to Start Receiving Retirement Benefits.

63: Full retirement age for your NYSLRS benefit if you are in ERS Tier 6.

65: Age most people are eligible for Medicare benefits.

66: Full retirement age for Social Security if you were born from 1943 through 1954. Add two months for each year from 1955 through 1959.

67: Full retirement age for Social Security if you were born in 1960 or later.

70: If you do not take your Social Security benefit, your benefit will increase each year until you reach age 70. Delaying Social Security after 70 will not increase your benefit.

73: Generally, if you have tax-deferred retirement savings and are no longer working, you must begin withdrawing some of this money when you reach a certain age. Under a recent change in federal law, you must start taking “minimum required distributions” at age 73. The minimum age had been 72, and the change does not affect those who turned 72 before the end of 2022. This age milestone will increase to 75 in 2033. Required minimum distributions do not apply to your NYSLRS retirement benefits.

One Last Number: Having a rough idea of your life expectancy is essential to retirement planning.

31 thoughts on “Age Milestones for Retirement Planning

  1. Sean Murtagh

    If my wife recently retired and all forms for the Domestic Relations Order were sent in when would I be eligible to receive my share of her retirement. I’m currently still working. Do I have to apply for retirement before I’ll get my share of her retirement?

    Reply
    1. NYSLRS Post author

      If NYSLRS receives all required documents before the member’s retirement, payments to an ex-spouse will begin as of the member’s retirement date, unless otherwise specified in the domestic relations order (DRO).

      You do not need to apply for retirement to begin receiving your share of your ex-wife’s retirement benefits.

      Reply
  2. Carmela M Triolo Triolo

    Does it make a difference in the base used to calculate my pension if I get funds for my vacation days or use my vacation days before retirement?. I want to maximize my benefit to the extent possible.

    Reply
    1. NYSLRS Post author

      Depending on when you joined the Retirement System, all or part of a lump sum payment for accumulated vacation could be used in calculating your Final Average Earnings. For more information, you can find your retirement plan publication to learn how your retirement benefit will be calculated.

      For account-specific information about how this may apply in your specific situation, you can message our customer service representatives using the secure contact form on our website. Filling out the secure form allows us to safely contact you about your personal account information.

      Reply
    1. NYSLRS Post author

      NYSLRS doesn’t administer health insurance programs for its retirees. For questions about post-retirement coverage, please contact your employer’s human resources (personnel) office.

      Reply
  3. Michael Case

    how do i calculate my lretirement day..//is it calculated from the date of membership? for example my statement says date of membership is may 27 1994…and my reirement is for 30 years…does that mean ! can retire on may 27 2024?

    Reply
    1. NYSLRS

      Your retirement date is up to you. Most vested members in regular retirement plans can retire at age 55, but they may face pension reductions if they retire before their full retirement age (62 or 63, depending on their tier). Tier 2, 3 and 4 ERS members can retire at 55 without a pension reduction if they have at least 30 years of service.

      Most members can use our online pension calculator to estimate what your benefit would be at different retirement dates and ages. Sign in to your Retirement Online account and click the “Estimate my Pension” button to get started.

      For help with Retirement Online or determining your retirement eligibility, please call our customer service representatives at 866-805-0990. Press 2, then follow the prompts. You can also message them using our secure contact form. Filling out the secure form allows them to safely contact you about your personal account information.

      Reply
  4. JOHN C SOLECKI

    How does service credit get calculated after 30 years? Does it stop at 37.5 years for calculating your pension benefit?

    Reply
    1. NYSLRS Post author

      Most full-time workers earn a year of service credit for working 260 workdays a year. Your service credit is prorated if you work part time.

      Your retirement benefit calculation depends on your tier and retirement plan. For information about your benefit calculation, look up your retirement plan publication.

      For account-specific information, you can call our customer service representatives at 866-805-0990, press 2, then follow the prompts. You can also message them using our secure contact form. Filling out the secure form allows them to safely contact you about your personal account information.

      Reply
  5. MICHAEL A KINLEY

    Who can Icontact to see if my recallculation for retirement is complete or if it can change. I don’t know if my sick leave ot lump sum vacation was used in the amount I am recieving now.

    Reply
    1. NYSLRS Post author

      To find out if your pension is being recalculated, please our call center agents at 866-805-0990, press 2, then follow the prompts. You can also message them using our secure contact form. Filling out the secure form allows them to safely contact you about your personal account information.

      Reply
      1. NYSLRS

        As of 12/31/2022, the New York State Common Retirement Fund held shares valued at approximately $37 million in Signature Bank and Silicon Valley Bank, a number that is relatively small in comparison to the Fund’s overall value of $242.3 billion (as of 12/31/22). The Fund’s investment staff continue to monitor the situation very closely.

        You can find information about the New York State Common Retirement Fund, including the Fund’s investment policies, on Office of the Comptroller’s website.

        Reply
  6. William S

    Does military service credit count towards the 30 year milestone. Example if I have 29 years of retirement credit in Tier 4 working for my civilian employer and 2 years of military credit and retire at age 55 would I receive 61.5% of FAS or would there be a penalty?

    Reply
    1. NYSLRS

      Military service credit can be used to reach retirement milestones such as vesting and qualifying for a better retirement benefit calculation.

      Reply
      1. william

        If someone retires with 30.4 years of service credit in tier 4 does it stay at 30.4 years for the pension or does it get rounded down to 30 years or if it was 30.6 years rounded up?

        Reply
        1. William

          If someone retires with 30.4 years of service credit in tier 4 is the pension calculated using 30.4 years or is it rounded down to 30.0 years?

          Reply
    1. NYSLRS

      If your benefit is paid by direct deposit, you will have access to it on the last business day of each month. If your benefit is paid by check, we will mail it on the second-to-last business day of each month.

      For specific pension payment dates, check out our Pension Payment Calendar page.

      Reply
  7. Donna Patterson

    I would still use this form if I was a member of the NYSLRS at the time of this employment and not looking to purchase it back only looking to get credit for it? Also when does the time I am purchasing for military service show up on my Total Service, is it after all of the arrears are paid?

    Reply
    1. NYSLRS Post author

      If you’re looking to receive credit for time when you were a member of NYSLRS, the way you apply may depend on the status of that membership. The NYSLRS social media team cannot access your account information. We recommend emailing our customer service representatives using our secure email form. One of our representatives will review your account and answer your questions about getting credit for a previous membership as well as your questions about purchasing military service credit. Filling out the secure form allows us to safely contact you about your personal account information.

      Reply
  8. Donna Patterson

    I was reviewing my employment summary and noticed that one of my public employments is not listed. What form do I need to fill out in order for this to be researched and added to my employment summary?

    Reply
    1. NYSLRS Post author

      To request credit for previous public employment, please complete and submit a Request to Purchase Service Credit (RS5042). Or, send a letter that includes specific details about the period of employment for which you are seeking credit.

      Mail either of these to:
      NYSLRS
      110 State Street
      Albany, NY 12244-0001

      For detailed information on receiving credit for all of your public service, please check your plan booklet on our Publications page. You can also read our publication, Service Credit for Tiers 2 through 6 (VO1854).

      Reply
  9. Tara Osborne

    While you don’t get hit with the federal penalty at age 55, do you have to pay NYS income taxes if you make a withdrawal from Deferred Comp?

    Reply
    1. NYSLRS Post author

      If you need the total amount you received for calendar year 2017 in order to prepare your tax return, that information will be on your 1099-R tax form, which we mail out by January 31 each year.

      Your Retiree Annual Statement, which will be mailed near the end of February, will also provide you with your calendar year 2017 totals.

      In the meantime, you can sign in to your Retirement Online account to view a breakdown of your current monthly payment.

      Reply

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