[ Your TRS Pension ]

Retirement 101

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Q:
This is my first year teaching so I am new to TRS. I have student loans and other expenses, shouldn’t those be my priority versus saving for retirement?
A:

Welcome! We hear you, and we have actually been where you are. While we can’t tell you how to manage your personal budget, certified financial planners recognize the ages of 20 to 35 as the key years for retirement savings. In the beginning of your career, retirement seems really far away, but starting to save for retirement early gives your money plenty of time to grow.

For more information on the New York State Teachers’ Retirement System, be sure to read the Your First Look at NYSTRS pamphlet, nysut.cc/trsfirstlook.

Q:
I have a 401(k) from a previous employer. Is this the same thing?
A:

No. NYSTRS is a defined benefit pension plan. Under a 401(k) or other defined contribution plans, your benefit depends on how much you save and how the markets perform. With a benefit from TRS, when you retire you’ll receive a monthly payment for life based on your age, salary and service credit history.

When you are credited with five years of service, your eligibility for a TRS pension is vested, or guaranteed — assuming, of course, you do not withdraw your membership prior to retirement. Learn more about your pension benefit at nysut.cc/trsnewmembers. Useful information is also available in the Pension Education Toolkit at nystrs.org/library/pension-education-toolkit/.

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Did you know?

Most Americans are supportive of pensions for all workers. A nationwide 2024 National Institute on Retirement Security public opinion survey found 86% of Americans say all workers, not just those employed by state and local governments, should have a pension. Take a look at the full survey at nirsonline.org.
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