Let's compare scenarios
At 58, Wendy has:
- 17 years of contributory service
- 20 years of eligibility service
- average annualized earnings of $70,000
The table below shows what Wendy's monthly pension would be if she retires at age 58 compared with if she waits two more years and retires at age 60.
| |
Age 58
20 years eligibility service |
Age 60
22 years eligibility service |
| Lifetime Pension |
$1,750/month
|
$2,030/month
|
| Bridge benefit (until age 65) |
$115/month |
$187/month |
| Annual pension (until age 65) |
$22,380/year
|
$26,604/year
|
| Annual pension (from age 65) |
$21,000/year |
$24,360/year |
After reviewing both scenarios with her Member Services Specialist, Wendy decides to continue working and retire on Dec. 31, 2027, at age 60, with an unreduced pension and the bridge benefit. Take a closer look at the details on the next tab.
How does Wendy’s decision impact her pension?
By continuing to contribute and build her pension for another two years, Wendy will qualify to retire at age 60, with a lifetime pension that will be 16% bigger than if she retired at 58. That's an extra $280 of monthly lifetime pension!
- Wendy will gain an additional two years of contributory service, which translates to an additional $158.
- The percentage of pension she will receive increases from 94% to 100% because the early retirement pension benefit gets closer to 100% with every extra full year of age and eligibility service.
- No matter when she retires, Wendy’s pension is higher because she qualifies for past service benefit improvements.
These enhancements result in a meaningful increase to her lifetime pension, which provides greater financial security. Plus, benefit improvements mean the bridge benefit is a smaller portion of her overall pension, so she will see less of a change
in her monthly payments when her bridge benefit ends at age 65.
During her retirement, Wendy’s pension may increase even more with any cost of living adjustments (COLA) that HOOPP
may approve in the future.