Retirement Countdown

Winter: Plan Your Golden Years

As winter sets in and your retirement nears, you'll likely wonder how you'll spend your days in retirement.  You may search for possible retirement destinations, plan your leisure activities, or consider a second career.  But don't lose sight of the work you still need to do.

For example, health insurance in retirement for you and your beneficiary is an extremely important consideration, so now is a good time to discuss coverage with your employer.  The Retirement System does not administer health insurance coverage.  Until you become eligible for Medicare, which in most cases is age 65, your health insurance coverage will depend on the choices your employer offers. 

Employers who participate in the statewide health plan must continue coverage for most retirees—but not necessarily at the same level as prior to retirement.  You may need to obtain additional private health insurance to supplement your coverage until you are eligible for Medicare, so we urge you to review your options before retiring.

When you receive your NYSTRS Benefit Profile, review the service and salary information for accuracy.  Make sure all of your service credit is listed and verify that any extra earnings have been reported.  Your benefit is based in large part on these figures, so it's crucial they are correct.  If you find discrepancies, request that corrections be made now.  Waiting until you actually file for retirement will slow the processing of your application and delay the calculation of your full benefit.

In most cases, the earliest you can begin collecting Social Security is age 62.  If you will be eligible to start receiving benefits at the end of the school year, contact the Social Security Administration by calling (800) 772-1213 or visit its Web site at www.socialsecurity.gov and determine what you need to do to receive that benefit.

Monitor pending New York State legislation, because new laws could affect your NYSTRS benefits.  A statewide retirement incentive, for example, would likely increase your benefit.  The easiest way for you to keep tabs on legislation is to visit the Legislation page of NYSTRS' Web site.  There, we monitor pending bills through the legislative process.

While preparing your federal income tax forms, start calculating the tax liability on your estimated retirement income.  Remember: There is no New York State or Social Security tax on your NYSTRS benefit.  However, it is subject to federal income tax.  For more information, contact the IRS or your financial advisor who can help you decide whether to have taxes withheld from your retirement benefit, or to pay estimated taxes.  If you move out of New York, your pension would be subject to the tax laws of your new state.

You must indicate your choice when you complete your retirement application, but you can change your selection in the future if necessary.

Continue to Spring.