California Retirement Benefit Consultants

Educators in California have a unique mix of potential income sources when it comes to retirement. As a teacher, you most certainly would be eligible for a defined-benefit pension plan. Whether you teach in a public school, a private school or at a nonprofit or parochial school (one that is supported by a church or religious organization), you will also likely have access to a defined contribution retirement plan such as a 403 (b) or 457 (b).

Our experienced California teachers' retirement benefit consultants specialize in educating teachers and school district employees on how to maximize their pension plans and make the best of their retirement savings. Our consultants are experts in public school employee retirement benefits and are contracted by school districts' retirement providers.

 
 
 
 
 
 

We can help answer your questions, address your fears and concerns, and review the following:

 
 
 

UPDATED CALSTRS PENSION PROJECTION

Your CalSTRS retirement benefit is a defined benefit pension. With five years of service credit, you re eligible for a guaranteed lifetime retirement benefit based on a formula set by law. Your retirement benefits are contingent on your years of service, age of retirement and the final compensation you receive when you retire. You can increase this retirement benefit by increasing one or more of the elements in the retirement benefit calculation formula. We can help update your CalSTRS pension projection.

BENEFICIARY PENSION BENEFIT OPTIONS

When you retire from service or begin receiving a Coverage B disability retirement benefit, you can elect an option to provide a lifetime of benefit to your loved ones after your death. You may also choose pre-retirement election of an option when you are eligible, but are not ready to retire. Electing an option will change your monthly retirement benefit. You can elect:

  • 100% beneficiary option: Your beneficiary will get the same monthly amount you received during retirement.

  • 75% beneficiary option: This means your beneficiary will receive 75% of the monthly amount you received during retirement.

  • 50% beneficiary option: Your beneficiary will get 50% of the monthly amount you received during retirement.

If you are considering electing an option beneficiary, talk to us to learn more about how this decision could affect your future retirement benefit.

RETIREMENT INCOME GAP CALCULATION

In order to determine the amount of money you need in order to retire, you will need to have an accurate estimate of your retirement expenses and your guaranteed sources of retirement income. When you have this information, you can calculate the gap between the two numbers and determine how much money you would need to save or how you can reduce expenses in order to fill this gap. Our qualified retirement counselors can help you calculate this gap so you can make an informed assessment of where you are in the process.

SOCIAL SECURITY WINDFALL ELIMINATION

The Windfall Elimination Provision or WEP is a formula that can reduce the size of your Social Security retirement benefit if you receive a pension from your teaching or school district job where you did not pay Social Security taxes. Such a "non-covered" pension might have been earned by working for a school district that does not participate in FICA payroll-tax withholding. If you collect such a pension, the WEP could reduce your Social Security benefit by up to half the amount of your pension. Our counselors can help you gauge the impact of the WEP on your retirement income.

 
 

Here are a few steps you can take to meet your target retirement age:

 
 

Take stock of your assets

You are the best person to determine your take-home pay, how much you have in the bank and how much you have saved for retirement. It is also important to take stock of other assets you own such as a home, vehicles, inherited items of value, etc. This might also be the time to look at what acquired skills you can use to help earn income during your retirement. For example, if you taught math in the classroom for decades, you may be able to translate those valuable skills to open a tutoring business after you retire.

Evaluate your health

Make sure you get preventive medical attention to reduce health complications after you retire. For example, if your blood sugar is borderline high, taking the necessary steps to improve your diet and stepping up exercise may help you avoid diabetes and related complications after you retire. These measures can help you curb medical expenses significantly after your retirement.

Create a retirement budget

It is important to evaluate how much money is coming in and what it's going to cost you to reach your retirement goals. You should also consider how much debt you have, including the amount you owe on your home mortgage. You will also need to check up on your investments and make sure you are diversifying your investments and avoiding fees. If you owe money, make sure you take the necessary steps to pay them off before you retire.

Find ways to cut expenses

Make a solid monthly budget, list out your bills and expenses and see where you can make cuts. Even minor adjustments such as eating out less or eliminating cable television expenses could make a difference in the long run. Cutting your expenses is a surefire way and an important step to take when it comes to meeting your target retirement age.

Stick to your plan

This may be the most challenging thing to do, but sticking to your plan may be well worth it and it can certainly help you meet your target retirement age if you did all your calculations right.

 
 
 
 

Our Counselors Can Help

Our experienced retirement benefit consultants are available meet one on one with California public school employees well before it's time for them to retire. We can provide the tools and counseling you need to help ensure you are on track to meet your retirement goals. Schedule your one-on-one appointment to receive information that can be extremely valuable for your financial future.