California Teacher Retirement Planning

Your pension is a guarantee.
Is it enough?

Most California teachers retire on roughly half their working salary. Understanding what that means for your life — and what you can do about it — starts here.

~1MCalifornia educators covered
$300B+in pension assets
54%of salary replaced on average
2.4%max age factor at 65
Where are you in your career?

Your retirement picture looks different at every stage

Select your stage. The questions, the decisions, and the urgency are different depending on where you are. Find yourself here — then follow the rest of the page to understand what it means.

0 to 5 years: the decisions you make now follow you forever

Retirement feels distant at this stage. It is not. The service credit you build now, and the supplemental savings you start now, directly determine the floor of your retirement income for the rest of your life.

Am I enrolled in CalSTRS correctly?+
Confirm with HR that you are enrolled from your very first paycheck. Gaps in enrollment are difficult to correct and permanently affect the service credit your pension is built on.
What exactly is a pension and why does mine matter?+
Your CalSTRS pension is a guaranteed monthly payment for life, determined by a formula — not the stock market. Every year you teach adds to it. A teacher who starts at 25 and teaches for 37 years could retire at 62 with nearly 75% of their final salary, guaranteed for life.
My pension covers everything, right?+
Not entirely. The average CalSTRS pension replaces about 54% of a teacher's final salary. Healthcare, inflation, and lifestyle make up the rest. Most California teachers do not pay into Social Security through teaching, so there is no government fallback. The gap is real and the earlier you address it, the more options you have.
What should I be doing right now?+
Two things matter most: protect your service credit and start supplemental savings. Even modest contributions made early compound significantly over time. If you are starting your teaching career later in life, this becomes even more urgent. The right strategy depends on your income, your timeline, and your goals — which is exactly what a personalized review is designed to build for you.

The question this stage leaves open: How much do I need to save, in what vehicle, and when? A complimentary review gives you a starting plan built around your specific situation.

Schedule my complimentary review

Why starting age matters more than most teachers realize

Start at 22, 40 yrs, 80% replaced
$68,000/yr on $85k salary
Start at 27, 35 yrs, 70% replaced
$59,500/yr
Start at 32, 30 yrs, 60% replaced
$51,000/yr
Start at 37, 25 yrs, 50% replaced
$42,500/yr

Illustrative. 2.0% age factor, $85,000 final compensation.

Starting later does not mean starting behind. It means the supplemental strategy needs to be right. That is exactly what a professional review is designed to build.

6 to 15 years: you have built something — do you know how much?

You are vested and a pension is waiting. The most important thing now is understanding the full picture, because decisions made in this window significantly shape what retirement actually looks like.

How much will my pension actually pay me?+
That depends on your years of service, your retirement age, and your highest average salary. Projections vary significantly at different retirement ages. A personalized CalSTRS benefit illustration gives you real figures, not a general estimate.
How do I know if I have a retirement gap?+
A retirement gap is the difference between what your pension pays and what you actually need in retirement. Most teachers are surprised by the real number. A retirement income professional can produce a personalized projection and compare it to your actual needs — a conversation that often changes how someone approaches the next decade.
Should I be contributing to a 403(b)?+
Almost certainly yes. A 403(b) is a tax-advantaged retirement savings account available through your school district. These are often your strongest earning years and contributions made now compound over time in ways that later contributions cannot replicate. The right amount, and the right vehicle, is part of what a personalized review addresses.

The question this stage leaves open: What is my actual retirement income, what will I need, and how do I close the gap? A professional review produces a real CalSTRS projection and gap analysis built around your situation.

Schedule my complimentary review

Quick pulse — your estimated pension at 62

Estimated annual pension
$16,000/yr
20% of salary — a meaningful gap likely exists

This is a rough ballpark, not a plan. A full diagnostic at California Pension Review gives you a real picture in about 3 minutes.

Run the full snapshot

The snapshot lets you book a review directly with one of our professionals, with your numbers already in hand.

16 to 25 years: the details start to matter enormously

You are close enough to see retirement on the horizon. The choices you make now around salary, savings, and timing are the ones that will determine your quality of life for decades.

How does my final salary affect my pension?+
Your pension is based on your highest average salary period. Maximizing earnings in your final 1 to 3 years directly and permanently raises your monthly check. Even a $3,000 to $5,000 increase can mean hundreds of additional dollars per month for life. Step increases, stipends, and education advancement all count.
Is my sick leave worth anything?+
Yes. Unused sick leave converts to additional service credit at retirement. Many teachers gain close to a full year of credit from accumulated days. Protecting that balance as retirement approaches can meaningfully add to your monthly pension for life.
When is the right time to retire?+
This is one of the most consequential questions in retirement planning and the answer is different for every teacher. Retiring at 65 instead of 62 can increase your annual pension by more than $10,000 permanently. But the right answer depends on your health, household finances, and projected retirement needs. That math is worth running correctly — with someone who can model the scenarios using your actual numbers.
What about healthcare before Medicare?+
CalSTRS does not provide health insurance. If your district does not offer retiree coverage, plan for individual premiums from your retirement date until Medicare at 65. For many teachers this is the single largest unplanned cost in early retirement, often $600 to $1,200 per month or more.

The question this stage leaves open: What is the optimal retirement date for my situation and am I on track? A personalized review models this with your real numbers, not general estimates.

Schedule my complimentary review

The value of waiting — same teacher, different outcome

Retire at 62

$51,000/yr

30 yrs x 2.0% x $85,000

Retire at 63

$56,355/yr

+$5,355/yr for life

Retire at 65

$64,872/yr

+$13,872/yr for life — breaks even in about 11 years

The right retirement age is personal. A professional review models your specific scenarios so the decision is based on your numbers.

26+ years: preparation separates a good retirement from a great one

You have spent a career building toward this. The final stretch is not the time to guess. A few specific decisions made in the next year or two will lock in your retirement income for the rest of your life.

Do I know my actual retirement benefit?+
A general estimate and an official benefit illustration are two very different things. In the two to three years before retirement, you need precise figures for what your pension pays at each possible retirement date. This is the foundation of every other decision you make from here.
What are my benefit election options?+
At retirement you choose an election that determines how much your beneficiary receives after you die. Options range from the full unmodified benefit that stops when you do, to continuance options at 50%, 75%, or 100% for a surviving spouse. This decision is permanent and irrevocable. Running it through a professional side-by-side comparison before you file is essential.
Can I maximize my benefit and still protect my family?+
For some teachers, yes. There are strategies that allow you to elect the higher unmodified benefit while still ensuring a surviving spouse is protected through planning put in place before retirement. Whether this is possible depends on your health, age, and household finances — and it is one of the most valuable conversations to have before you file.
What should I do in the next 12 months?+
Request your official CalSTRS benefit illustration, review your benefit election options carefully, assess your healthcare coverage after retirement, and sit down with a retirement planning professional who can bring all of these pieces together into a complete picture before any permanent decisions are made.

You are too close to leave this to chance.

A complimentary review with one of our retirement planning professionals gives you a complete, personalized picture before any permanent decisions are made. Most people leave with clarity they did not have going in.

Schedule my complimentary review

Conversations your review will address

Each of these is addressed directly in your complimentary review.

Step 1

Understand how your CalSTRS pension is built

Your pension is calculated by a formula, not market performance. Every year you teach adds to a guaranteed monthly income for life.

Learn more +
Your retirement benefit equals your years of service credit multiplied by your age factor (between 1.16% and 2.4%) multiplied by your highest average salary. A teacher with 30 years retiring at 62 on $90,000 receives approximately $54,000 per year, guaranteed for life.
Step 2

Identify whether you have a retirement gap

The average pension replaces about 54% of final salary. The remaining 46% needs to come from somewhere — and the benefit election you make at retirement permanently shapes how protected your family will be.

Learn more +
Most California teachers do not pay into Social Security through teaching. The benefit election you make at retirement is irrevocable and determines what your family receives after you are gone. Understanding both of these fully, before decisions are made, is what a review is designed to deliver.
Step 3

Make a plan with someone who knows your world

A complimentary review with one of our retirement planning professionals gives you a personalized projection, a gap analysis, and a clear-eyed look at your options — before any permanent decisions are made.

Learn more +
We work exclusively with California educators. A review takes about an hour. We produce your actual CalSTRS benefit projection, walk through your benefit election options side by side with real dollar figures, identify any retirement income gap, and discuss strategies to address it. We are transparent about how we work and there is no obligation to proceed.
Step 1

Understand how your CalSTRS pension is built — and what it will actually pay you

The CalSTRS Pension Formula

How your monthly CalSTRS pension is determined

Service Credit
Years of credited teaching
x
Age Factor
1.16% to 2.4%
x
Final Compensation
Highest average salary
= Your annual pension
A guaranteed monthly check, paid for the rest of your life.
Example: 30 years, retiring at 62, $90,000 final compensation: 30 x 2.0% x $90,000 = $54,000/year ($4,500/month)
Retirement ageAge factorAnnual pension (30 yrs, $85k)
551.16%$29,580
591.76%$44,880
62 — standard full benefit2.00%$51,000
652.40%$61,200
Step 2

Identify whether you have a retirement gap — and understand the decisions that shape it

The Retirement Gap

Most California teachers are surprised when they see the real number

Your pension is guaranteed. But for most California teachers, it replaces roughly half of their working salary. The life you plan to live in retirement requires the rest — and knowing the size of that gap is the first step toward doing something about it.

What your pension typically covers
54%

The average CalSTRS pension replaces approximately 54% of a teacher's final salary. That is the foundation your retirement income is built on. How far it goes depends on what you need.

What the gap represents

A retirement gap is simply the difference between what your pension pays and what you actually need your income to be in retirement. For most teachers, that gap is real — and its size is personal to your situation.

Whether it is small or significant, knowing the number gives you something concrete to plan toward. Not knowing it means making permanent decisions without the full picture.

The earlier you identify the gap, the more you can do about it

A teacher who identifies a meaningful retirement income gap at 35 has decades to address it thoughtfully. The same teacher discovering it at 58 is working with a much shorter runway. The gap itself does not change — but the options available to close it absolutely do.

Want to see your gap in about 3 minutes?

The California Pension Review tool estimates your projected CalSTRS pension, your retirement income target, and the gap between them. Your results come into your personalized review, giving our team a starting point to build your plan before we even meet.

No cost. No account. About 3 minutes.

Run my retirement snapshot
CalSTRS Benefit Elections

The decisions that shape your retirement income — permanently

Once you understand the gap, the next question is what you can do about it. Some of the most powerful levers are the benefit elections you make when you file for retirement — a single, irrevocable decision that determines your monthly income for life and what your family receives after you are gone.

Understanding your options before you file is not optional. It is the difference between a decision made with full information and one made under pressure at the wrong moment.

Option 1

Unmodified — 100% Member Benefit

The highest possible monthly payment. Maximized for as long as you live. When you die, all payments stop and your beneficiary receives nothing from CalSTRS.

Consider if: You are single, or have separate income protection already in place for a surviving spouse.
Option 2

100% Beneficiary Continuance

Your beneficiary receives your full monthly benefit after you die, for the rest of their life. Your own payment is reduced now to fund that guarantee. The reduction depends on both your ages.

Consider if: Your spouse relies heavily on your income and has limited independent savings.
Option 3

75% Beneficiary Continuance

Your beneficiary receives 75% of your monthly benefit after you die. A smaller reduction to your own check than the 100% option, with meaningful protection still in place.

Consider if: You want meaningful spousal protection while preserving more of your own monthly income.
Option 4

50% Beneficiary Continuance

Your beneficiary receives half your monthly benefit after you die. The smallest reduction to your own check, but also the least protection left behind.

Consider if: Your spouse has meaningful independent income or savings but you still want some continuance in place.
Important

This decision cannot be changed once you retire

Your benefit election is permanent the moment you file. There is no going back if circumstances change — which is exactly why it deserves careful thought well before your retirement date.

Something worth knowing

There may be a smarter way to structure this

Some members are able to elect the higher unmodified benefit while still ensuring their family is protected through planning strategies put in place before retirement. Whether that is possible depends on your age, health, and financial picture — and it is one of the most valuable things to explore before you file.

You now know what is at stake.

The gap is real. The benefit election is permanent. The right plan depends on your specific numbers, your timeline, and your household. That is exactly what a complimentary review is designed to work through with you.

Schedule my complimentary review
Step 3

Make a plan with someone who knows your world

Your Complimentary CalSTRS Retirement Review

One conversation. Two problems addressed. Real numbers.

Everything on this page has been building toward one question: what should you actually do? A complimentary review with one of our retirement planning professionals is where the general becomes personal. We take your specific numbers and work through the two things that matter most.

Concern 01

Your retirement gap — and how to close it

Your personalized CalSTRS projection — your actual estimated benefit at multiple retirement ages, based on your service credit and salary history. Not a general estimate. Your number.

Your retirement income gap analysis — what your pension pays versus what you will actually need, presented clearly so you can see exactly where you stand.

A clear path to close the gap — if one exists, we walk through strategies available to you, tailored to your career stage, your timeline, and your household.

Concern 02

Your benefit election — and protecting your family

Side-by-side benefit election comparison — what each option pays you monthly and what it pays your beneficiary, with real dollar figures specific to your ages and situation.

Maximizing your pension benefit — exploring whether strategies exist that allow you to elect the highest monthly benefit while still ensuring your spouse or beneficiaries are protected after you are gone.

A decision made with full information — your benefit election is permanent. We make sure you understand every option and every tradeoff before you commit to anything.

For the people who spend their lives shaping others.

Teachers give a great deal to their students and communities, often without much thought for what comes next for themselves. This review exists to give something back — a clear, honest look at your retirement picture so you can make good decisions with confidence. Come in with your questions. Leave with answers.

Schedule my complimentary review About one hour — in person or by virtual meeting
Work With Us

Schedule your complimentary CalSTRS retirement review

Choose the format that works best for you. Every path leads to the same outcome — a clear, personalized picture of your retirement before any permanent decisions are made.

Virtual meeting

A one-on-one virtual meeting at a time that works around your schedule. Start with a free 3-minute snapshot, then book directly with one of our retirement planning professionals.

Schedule my complimentary review

In-person visit

We meet clients throughout LA, Ventura, San Bernardino, and Santa Barbara counties — at our office or at a location convenient for you.

24009 Ventura Blvd, Suite 230 Calabasas, CA 91302 (818) 225-1912

Give us a call

Have a question before committing to a meeting? We are happy to talk through the basics over the phone. No appointment needed.

(818) 225-1912
Service area: We meet clients in person throughout Los Angeles County, Ventura County, San Bernardino County, and Santa Barbara County. Our office is at 24009 Ventura Blvd, Suite 230, Calabasas, CA 91302. For clients outside these areas, virtual meetings are just as thorough.
The Team

Who you will speak with

The retirement planning professionals at Hostetter Financial Group work specifically with California educators. When you schedule a review, you will speak with someone who knows your world.

JH

Jim Hostetter

Retirement Planning Professional

Bio coming soon.

(818) 225-1912Email coming soon
DT

Darin Tinglof

Retirement Planning Professional

Bio coming soon.

(818) 225-1912Email coming soon
DT

Donovan Tinglof

Retirement Planning Professional

Bio coming soon.

(818) 225-1912Email coming soon
+

Additional Professional

Retirement Planning Professional

Bio coming soon.

(818) 225-1912Email coming soon
California Teacher Retirement FAQ

Questions California teachers ask most

Ready to see where you actually stand?

Schedule a complimentary review with one of our retirement planning professionals. We will look at your pension, your gap, and your options — clearly and without pressure.

Schedule my complimentary review
Or call us at (818) 225-1912 — in-person available throughout Southern California