While your TRS pension benefit will provide a valuable source of ongoing retirement income,
your pension probably won't provide enough income to ensure a financially secure retirement. Let's look at the numbers:
As you can see, there is a gap between the amount of income provided by the average career employee's TRS pension and the minimum amount of income you will likely need to live a financially comfortable retirement. To increase the income available to you in retirement, you’ll need to supplement your TRS pension with your own personal savings. One way to save for retirement is in a 403(b) plan.
With a 403(b) plan, contributions are deducted from your paycheck on a pre-tax basis. Taxes on your 403(b) contributions are deferred until you begin making withdrawals, typically upon retirement. This offers several tax advantages:
Before opening a 403(b) account, TRS encourages you to thoroughly research the options available to you. There are a wide variety of online resources available in addition to the information TRS has provided on this website. You can begin learning more about 403(b) plans and how they work by visiting
Evaluating Your Retirement Options from the U.S. Securities and Exchange Commission (SEC).
*A career employee is defined as one who retires at age 62 with 32 years of service. The 68% replacement ratio applies only to replacement income at initial retirement. Inflation will lower effective purchasing power over time. For more information, see page 13 of the
TRS Pension Benefit Design Study (pdf).
**94% of school districts do not pay into Social Security – check to see if yours does.