CalSTRS Retirement Calculator: Estimate Your Teacher Pension
Calculate your CalSTRS pension benefits. Understand the 2% at 62 formula and plan for California teacher retirement.
Key Takeaways
- 1CalSTRS serves California public school educators
- 2Standard formula is 2% at 62 for career teachers
- 3Service credit × benefit factor × final compensation = pension
- 4Use myCalSTRS portal for personalized estimates
- 5Most California teachers don't receive Social Security
- 6Supplement your pension with 403(b) or 457 savings
- 7Consider diversification beyond your CalSTRS pension
What Is CalSTRS?
The California State Teachers' Retirement System (CalSTRS) is the nation's largest educator-only pension fund, serving over 975,000 California public school educators.
- $300+ billion in assets under management
- Serves K-12 teachers, community college instructors, school administrators
- Defined benefit pension - guaranteed by formula
- Most members don't participate in Social Security
- Funded by member contributions, employer contributions, and state
No Social Security
Most CalSTRS members don't contribute to Social Security. Your CalSTRS pension may be your primary retirement income, making additional savings important.
CalSTRS Pension Formula
The CalSTRS Defined Benefit formula is: Service Credit × Age Factor × Final Compensation.
| Retirement Age | Benefit Factor | Notes |
|---|---|---|
| 55 | 1.16% | Earliest normal retirement |
| 58 | 1.46% | Increasing factor |
| 60 | 1.76% | Increasing factor |
| 62 | 2.00% | Career educator standard |
| 63 | 2.20% | Maximum factor |
| 65+ | 2.40% | Highest possible factor |
Example Calculation
Teacher with 30 years of service, retiring at 62 with $90,000 final compensation: 30 × 2.0% × $90,000 = $54,000 annual pension (60% of final salary).
How to Calculate Your CalSTRS Pension
Follow these steps to estimate your CalSTRS defined benefit.
- **Service Credit**: Years and fractions of CalSTRS employment
- **Age Factor**: Percentage based on your retirement age (1.16% to 2.4%)
- **Final Compensation**: Highest average salary (1 or 3 years)
- 1Log into myCalSTRS at myCalSTRS.com
- 2Access the Retirement Benefits Calculator
- 3Review your service credit history
- 4Identify your projected final compensation
- 5Select your anticipated retirement age
- 6Calculate: Years × Age Factor × Final Comp
- 7Consider your beneficiary/survivor options
- 8Factor in any Cash Balance or Defined Benefit Supplement
Exploring your retirement options?
Our 60-second quiz matches you with the right account type
CalSTRS Retirement Options
Choose a benefit option that balances your income needs with protection for loved ones.
- **Member-Only**: Highest payment, no survivor benefits
- **100% Beneficiary**: Spouse receives 100% after your death
- **75% Beneficiary**: Spouse receives 75% after your death
- **50% Beneficiary**: Spouse receives 50% after your death
- **Compound Option**: Multiple beneficiaries with custom percentages
WEP/GPO Impact
If you have Social Security from other employment, the Windfall Elimination Provision (WEP) or Government Pension Offset (GPO) may reduce those benefits.
Supplementing Your CalSTRS Pension
Many California teachers rely solely on CalSTRS for retirement. But with no Social Security and a 2% COLA that may not keep pace with inflation, additional savings provides security.
- 403(b) and 457 plans available to educators
- Can contribute to both plans simultaneously
- 457 plans have no 10% early withdrawal penalty
- Roll to IRA when you leave or retire
- Gold IRA provides inflation protection
- Diversify beyond a pension tied to California's budget
- Augusta Precious Metals assists with 403(b)/457 rollovers
Frequently Asked Questions
1When can I retire from CalSTRS?
You can retire as early as age 55 with at least 5 years of service. At 55, the age factor is 1.16%. The age factor increases until age 65+ when it reaches 2.4%.
2Does CalSTRS provide cost-of-living increases?
CalSTRS provides a 2% simple annual COLA on the base benefit. However, purchasing power protection may apply if cumulative inflation exceeds cumulative COLAs.
3Can I buy additional service credit?
Yes, you can purchase additional service credit for periods like maternity leave, sabbaticals, or out-of-state teaching. This increases your pension.
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