Let's compare scenarios
At 58, Mary has:
- 17 years of contributory service
- 20 years of eligibility service
- average annualized earnings of $70,000
Here is what Mary's monthly pension would be if she retired at age 58, in comparison to if she waits two more years and retires at age 60.
| | Age 58
20 years eligibility service | Age 60
22 years eligibility service |
|---|
| Monthly pension | $1,642/month
| $1,909/month
|
| Bridge benefit (until age 65) | $222/month | $308/month |
| Annual pension (until age 65) | $22,368/year
| $26,604/year
|
| Annual pension (after age 65) | $19,704/year | $22,908/year |
After reviewing both scenarios with her Member Services Specialist, Mary decided that she will continue working and retire on Dec. 31, 2024 at age 60 with an unreduced pension and HOOPP’s bridge benefit, as outlined in the next tab.
The result
By continuing to contribute and build her pension for another two years, Mary will qualify to retire at age 60, with a pension that will be 16% bigger than if she retired at 58. That's an extra $267 of monthly lifetime pension!
That’s because:
- Mary gained an additional two years of contributory service, which translates to an additional $152.
- The percentage of pension she would receive would increase from 94% to 100% based on the early retirement pension benefit.