Let's compare scenarios
At 55, Patricia will have:
- 14 years of contributory service
- 14 years of eligibility service
- Average annualized earnings of $110,000
The table below shows what Patricia's monthly pension would be if she retires at age 55 compared with if she waits one year and retires at age 56.
| |
Age 55
14 years eligibility service |
Age 56
15 years eligibility service |
| Lifetime pension |
$1,723/month
|
$2,142/month
|
| Bridge benefit (until age 65) |
$74/month |
$113/month |
| Annual pension (until age 65) |
$21,564/year
|
$27,060/year
|
| Annual pension (from age 65) |
$20,676/year |
$25,704/year |
After reviewing both scenarios with her Member Services Specialist, Patricia decides that retiring on Dec. 31, 2026, at age 56 with 15 years of eligibility service is the right choice for her and her family. Take a closer look at the details on the next tab.
How does Patricia’s decision impact her pension?
By waiting just one more year to retire, Patricia could increase her lifetime pension by $419 per month, which is a 24% increase!
- Patricia gains an additional year of contributory and eligibility service, which translates to an additional $106.
- She qualifies for a higher early retirement benefit once she reaches 15 years of eligibility service, which translates into an additional $313. Reaching this milestone means that she gets a bigger lifetime pension and bridge benefit.
- The percentage of pension she receives will increase from 70% to 82% 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, her lifetime pension is higher because she qualifies for past service benefit improvements.
These increases give Patricia added financial confidence to retire when she is ready. 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, Patricia’s pension may increase even more with any cost of living adjustments (COLA) that
HOOOP may approve in the future.