While the definition of retirement security is different for everyone, the key to financial freedom in retirement is taking the right steps now. Your SERS pension provides an important foundation, but you need more than one income source for a truly secure retirement.
Even if you don’t retire with a SERS pension, SERS can still play a role in your overall retirement plan. When you leave SERS-covered employment, your employee contributions may be refunded.
Instead of spending that refund or paying unnecessary taxes, consider rolling over those funds into a retirement savings account. This can help preserve your savings and keep your long-term plan on track.
As a public employee in Ohio, you have access to one of the best retirement savings options available: Ohio Deferred Compensation.
Benefits include:
Multiple investment options
Contributions made directly from your paycheck
Potential tax advantages
Portability if you change jobs
Saving early, even in small amounts, can make a meaningful difference over time.
Everyone’s situation is different. The best way to understand your future pension is to run your own estimate. You can create an estimate anytime through Account Login. After reviewing your estimate, take a moment to consider whether that amount will meet your needs in retirement. If not, now is the time to explore ways to adjust your plan.
Consider the average new SERS retiree:
Planning for retirement doesn’t happen all at once. It’s a series of decisions made over time, based on your career, finances, and personal goals. These ten steps are designed to help SERS members think through the key areas that can support a more secure and confident retirement.
Your SERS pension is based on your service credit, highest three years of earnings, and age at retirement. In many cases, working longer can result in a higher monthly benefit. Requesting multiple estimates can help you compare retirement dates and choose the option that works best for you.
If you’ve worked in other public employment or contributed to another Ohio retirement system, you may be able to combine that service credit with your SERS service credit. Military service or previously refunded service credit may also be eligible for purchase, which could increase your pension.
It’s important to start saving now and have a savings plan in place. Participate in annual programs like America Saves Week at AmericaSaves.org to learn more about how you can prepare for retirement by saving for the future you want today.
Tracking expenses, creating a budget, and planning ahead for major purchases can help you reduce financial stress both now and in retirement. Pay off as much debt as possible so you have fewer expenses in retirement.
Planning ahead can protect you and your loved ones. Taking time to create or update estate documents such as a will, trust, or power of attorney helps ensure your wishes are known and your affairs are handled as intended.
Staying healthy supports your quality of life and may reduce medical costs in retirement. Choose physical activities you enjoy, schedule regular checkups, and take advantage of preventive care. Health care needs and coverage often change at retirement. Understanding how your health care options may change, and when to apply, can help you avoid gaps in coverage and plan for future costs.
While working members typically receive coverage through their employer, retirees may be eligible for SERS’ health care coverage based on service credit and other requirements. Premiums, enrollment timing, and available plans can differ significantly from active employment coverage.
Your SERS pension gives you a foundation, but you need more than one income for a secure retirement. Social Security and personal savings can help support your lifestyle, and incorporating other income streams, such as investments and Ohio Deferred Compensation, boosts your overall security in retirement. Ohio Deferred Compensation offers retirement savings options designed specifically for public employees.
Think about how you want to spend your days in retirement. Whether that includes travel, hobbies, volunteering, or part-time work, planning ahead can help you align your finances and goals with the lifestyle you envision. Ask us about being a reemployed retiree.
When is the best time for YOU to retire? It’s a personal choice based on your budget, beneficiary, and health care needs. We’re here to provide you with information on the options available.
Read our newsletters for information about your pension and health care. Stay connected with us on social media for retirement news and updates.
We’re glad you’re a member of SERS. If you have questions about your retirement account or benefits, we are here to help.
