April is National Financial Capability Month, but it’s better known as Financial Literacy Month. It’s dedicated to helping people understand how to make informed financial decisions and manage money effectively.
A recent report from the TIAA Institute finds that “adults with greater financial literacy tend to have better financial well-being.” In addition:
- Participants who had more financial knowledge were more likely to be saving for retirement.
- Retirement readiness tends to be better among those with greater financial literacy.
- For retirees, 88 percent of those who were the most familiar with financial literacy concepts said that their retirement has met or exceeded their expectations.
Financial literacy encompasses a variety of skills, but we’ll focus on some basics that are relevant to planning for a successful retirement. Whether you’re just starting your career or planning on retiring soon, mastering these skills will help you improve your future financial security.
Financial Literacy Begins With the Basics
A good way to start building your financial literacy is by understanding your current financial situation. Ask yourself some basic questions:
- How much do you earn and spend each month?
- How much debt do you have?
- Do you have any major expenses on the horizon?
If you know where you stand, you’ll be in a better position to plan.
You can estimate your pension by using the benefit calculator in Retirement Online to get an idea of what you’ll earn in retirement. (You can also check your future Social Security benefit online.)
Creating a Budget
Tracking your income and expenses can help you make better financial decisions, avoid debt, prepare for emergencies and save money.
If you don’t know how to get started, here are some tips on creating a budget. If you plan to retire soon, you can use our worksheet to create a post-retirement budget.
Debt and Interest Rates
Debt is not necessarily bad, but it can easily derail your financial plans if you’re not careful. Credit cards pose a risk because they are easy to use and may have very high interest rates. The average interest rate is about 21 percent.
If you have credit card debt and only pay the minimum each month, you’ll make little progress on reducing the balance while the interest you accrue every month adds up. For example, if you owed $1,000 on a credit card with a 21 percent interest rate and made payments of $40 a month, it would take you 34 months to pay off, and your total interest cost would be more than $300. On the other hand, if you paid $100 a month, it would be paid off in 12 months and your total interest would be just over $100.
Saving
As a NYSLRS member, you’ll receive a lifetime pension that will be based on your years of service and earnings. Building a retirement savings to supplement your pension and Social Security can create more financial security. It’s never too early or too late to start saving for retirement. To learn more about building your savings, read our recent blog post, The Right Time to Start Saving for Retirement is Now.
Follow our blog for future posts on retirement savings and related topics.
Has consideration been given to having the retirement website hours extended further into the evening, or having it available 24/7?
Yes, over time, we expect to expand the hours of availability. You can visit our Retirement Online sign in page for the most current online availability information.
I have yet to find a way to reach a live customer service agent who can answer account-specific questions. The phone numbers given do not do this. Has anyone actually found out how to do this? So frustrating.
We’d like to help resolve your issue. Your message is important to us, and we have sent you a private message in response.
i’d like to know, if i have been paid my final average salary for my job. i retired iretired on aug 27th 2021.
For account-specific information, 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.
Many thanks. As a former New York State employee and a current NYS retiree, I look forward to participating in your assistance with evaluating my existing retirement pension.
Robert P. BOWLES
I am looking to start taking my benefits need information on necessary steps
A good way to get started is to sign in to Retirement Online to review the information we have on file for you, such as your total service credit, and use the online benefit calculator to estimate your pension. If you don’t already have an account, go to the Sign In page and click the “Sign Up” link under the “Customer Sign In” button.
You may also be interested in the retirement timeline on our website. It shows the steps you’ll need to take and highlights important topics and information you’ll need to consider.
If you have account-specific questions, or want to schedule a one-on-one consultation, please call our customer service representatives at 1-866-805-0990 (or 518-474-7736 in the Albany, NY area), press 2, then follow the prompts. One of our representatives will review your account and respond to your questions. You can also email our customer service representatives using our secure email form. Filling out the secure form allows them to safely contact you about your personal account information.