How to avoid three common mistakes in your CalSTRS retirement planning
Pension Sense blog | March 7, 2023 | Barbara Zumwalt
When is the right time to think about your retirement?
Believe it or not, it’s now. No matter your age. The more you think about retirement now, the less likely you will worry about it later.
Whether you’re just starting your career, you’re in the middle of your career, or you have that calendar with the big red X’s counting down the days, there are a few steps you can take today to avoid some of the common pitfalls of retirement planning.
Don’t put off learning about your benefits
CalSTRS offers various services to help you learn about your benefits and actively plan for your financial future. Our webinars and workshops are a great place to start.
We have information designed for all stages of your career as an educator, be it early career, midcareer or near retirement.
Don’t delay opportunities to build your future
Learn what to expect from your retirement pension as soon as possible.
Did you know the average CalSTRS retirement benefit replaces about 50% of a career educator’s salary? If you want to increase your retirement income, learn about this gap and how to close it by contributing to a supplemental income plan, such as Pension2®. No matter how small your contributions might be, you could reap the benefits of compounding (that is, you’ll earn interest on your interest).
Don’t lose sight of inflation pressures in retirement
“Boy, things are so much cheaper today than they were last year,” said no one, ever.
As you look forward to your retirement, it’s vital to anticipate that inflation is more than likely. CalSTRS provides an annual benefit adjustment and purchasing power protection as part of your defined benefit. And if you’ve taken advantage of supplemental income opportunities, inflation won’t take as big a bite out of your financial security.
For information on how to reach CalSTRS, visit the contact us webpage.