Do you have a retirement savings account? If you’re a new NYSLRS member, your future pension could provide a significant portion of your retirement income, but it’s also a good idea to save for retirement to supplement your pension and Social Security.
Why Should You Save for Retirement?
Retirement savings can be an important financial asset when you retire. Savings can enhance your retirement lifestyle and give you the flexibility to do the things you want.
Your savings can provide money for traveling, continuing your education, pursuing a hobby or starting a business. The money you set aside can be a resource in case of an emergency, act as a hedge against inflation and boost your retirement confidence.
Setting a Retirement Savings Goal
How much to save is a personal decision, but here are some things to consider.
Financial advisers recommend that people save 10 to 15 percent of their gross earnings throughout their careers to be able to retire comfortably. But that advice is aimed at people with defined contribution retirement plans, such as a 401(k), as their main source of retirement income.
As a NYSLRS member, you’re part of a defined benefit plan, also known as a traditional pension plan. Your pension, based on your years of service and earnings, will provide a lifetime benefit. That benefit could replace a substantial portion of your earnings during retirement.
Having a pension means you may not need to save as much as someone with only a 401(k). If you’re just starting out in your career, you may want to pick a savings amount (or percentage of your earnings) you’re comfortable with. Use a retirement savings calculator to see how much your savings plan could yield over time or test the results of different savings amounts.
Here you can see potential savings results of someone who invests 50 dollars every two weeks over 30 years. While the stock market has been turbulent lately, stock values tend to rise. Over the long term, stock market returns average about 10 percent a year.
As you get closer to retirement, you should develop a plan to withdraw money from your retirement savings. A withdrawal plan will give you a better grasp of the income you can expect from your nest egg.
Here is one possible withdrawal strategy, which was designed to provide retirement income for 20 years. Please note, if your retirement is far in the future, the money you withdraw may not have the same value that it has today. However, while inflation has been high in recent months, it does cycle and has been much lower in the past.
If you find you’ll need to save more to meet your goal, you can start making adjustments to help ensure you’ll have enough savings in retirement.
How To Get Started
State employees and many municipal employees are eligible to save for retirement through the New York State Deferred Compensation Plan. Once you’ve signed up for the plan, your retirement savings (which may be tax-deferred, depending on your plan) will be automatically deducted from your paycheck. (The Deferred Compensation Plan is not affiliated with NYSLRS.)
Find out if your employer participates in the Deferred Compensation Plan. If they don’t, check with your employer’s human resources (personnel) office about other savings options you may be eligible for.
More Information About Retirement Savings
You can find more information about saving for retirement in these recent posts:
You still have not answered my question from 2 weeks ago as to why have 2 of my coworkers, who retired one year after me get their adjustment and I have not!!!!!!!
You have not answered my question as to why my coworkers who retired over 1-1/2 years after me get their adjustment and I have not????
The people at NYS retirement said they are behind, yet again coworkers of mine retired after me and they received their adjustments within months. I’ve been told that You have all my information needed to do my adjustment. Again, why am I waiting 3 years when my coworkers who retired one year ago received theirs. Makes no sense to me.
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My name is Maria T BELLINO. I retired from City Of Yonkers on January 30,2020. I have yet receive my adjusted retirement amount. 2 of my go-workers who retired both in 2021 has already received their adjustments. I don’t understand why they who have retired after me has already received theirs and I keep getting the run around. Please advise !!
When you retire, your pension payment is based on the salary and service information we have on file for you at retirement. In some cases, slight adjustments are made to the initial amount after we receive and process final payroll information from your employer. Finalizing your retirement benefit amount can take some time. The time it will take can vary depending on the complexity of your circumstances. These recalculations are generally minimal compared to the overall benefit amount.
Once we have all the information we need and we finalize your benefit amount, if your payment increases, you will receive a retroactive payment for the amount you are owed back to your date of retirement.
I am a member of the NYSLRS with 18 years of service. I am 86 years of age and still working 40 hours. Should I retire?
Most members can use the benefit calculator in Retirement Online to create a pension estimate based on information NYSLRS has on file for them. 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.
If you have questions about your benefits or need help with Retirement Online, 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.