Your TRS Benefit
Your Retirement Security Starts Here
The Teacher Retirement System of Texas (TRS) is designed to be the cornerstone of your income in retirement. However, you should be aware that your payout from the plan will not replace 100 percent of your income at retirement. You will have to make up the difference from other sources of income.
Your Retirement Evaluation Action Plan
- Evaluate how much your retirement "take-home" pay will be from the TRS payout compared to your final salary.
- Determine where your income will come from to make up the difference.
- Call our agent today
Reality Check: Potential for a 44% Loss of Spendable Income
Your retirement "take-home pay" may be much less than you think.
The following example shows an educator retiring with 32 years of service who was making a final salary of $75,900. While the maximum TRS benefit was only 32% less than the final year's gross pay, once survivorship benefits and health care costs are considered the reduction of income is more profound.
The following example shows an educator retiring with 32 years of service who was making a final salary of $75,900.
While the maximum TRS benefit was only 32% less than the final year's gross pay, once survivorship benefits and health care costs are considered the reduction of income is more profound.
The Difference in Spendable Income: Post-retirement vs. Pre-retirement
| Lable | Post Retirement | Pre Retirement |
|---|---|---|
| Years of Service | 32 | |
| 5 Year Average Income | $ 69,524 | |
| Percentage Pay Factor | 73.6% | |
| Gross Annual Income | $51,169 | $75,900 |
| Less 100% Joint Benefit | $5,270 | |
| Less Approximate Annual | ||
| Health Care (employer-subsidized) | $4,000 | $2,000 |
| Less Taxes (15% tax rate) | $11,085 | |
| Net Annual Income | $35,015 | $62,815 |
| Net Monthly Income | $2,917 | $5,234 |
Source: The Retirement Analysis Kit (TRAK) Software by TrustBuilders, Inc. 2012 Version. www.tbinc.com For Illustrative Purposes Only
Your Retirement Savings Plan Options
Harness the Power of Automatic Pre-tax Savings Today to Fill the Retirement Gap
Now that you know you have a retirement income gap, what should you do? Ensuring you have enough income to support the retirement you envision requires an ongoing action plan that you put in place well before you retire. This action plan should include saving in a 403(b) plan. Your organization's retirement plan gives you the opportunity to save even more for retirement, above and beyond what you may have available to you from your TRS benefit.
Retirement Solutions Designed with You in Mind
Save for a better tomorrow by choosing a flexible indexed annuity that can give you:
- • peace of mind knowing that the funds will be there when you retire.
- • a guaranteed2 stream of income for life without giving up control of your money. You keep control of your money at all times.3
- • the opportunity to leave any balance in your annuity to your loved ones when you die.
Schedule an appointment with our agent today to discuss how you can set up your savings plan to close your retirement income gap. Our agent can tailor a supplemental savings program that will take into consideration your current savings and your future retirement needs.
Be aware of changes impacting your retirement plans and financial situation
It's important to keep up-to-date on whether your retirement savings will still cover your anticipated retirement expenses based on any recent lifestyle changes. Our agent can assist you in monitoring your plan annually to ensure your retirement plan stays on track with your financial goals.
(2) Guarantees are dependent on the claims-paying ability of the issuing company.
(3) Ask me about adding an innovative Guaranteed Lifetime Rider (GLIR) to your policy.
Copyright © 2013. All Rights Reserved. Guarantees are dependent on the claims-paying ability of the issuing company.
This information is not intended as tax advice. Please consult with your Accountant prior to making any decisions.