How Retirement Age Affects Pension Income
Your CalSTRS age factor - the percentage used in your pension formula - increases the longer you wait to retire, up to a defined maximum. That means retiring earlier generally locks in a lower percentage, even if your years of service stay the same.
Age Factor in Plain English
Think of the age factor as a dial that turns up slightly for every additional year you work past your tier's minimum retirement age. Combined with the extra service credit you earn by working longer, this is why even a few additional years can meaningfully change your monthly pension.
Looking at Different Ages
While exact figures depend on your specific membership tier, the general pattern holds across CalSTRS tiers: a teacher retiring at 55 will typically see a noticeably lower age factor than the same teacher retiring at 59, 62, or 65. Each additional working year shifts both pieces of the formula - service credit and age factor - in your favor.
Why Waiting Can Increase Income
For teachers who are able to keep working, delaying retirement by even two or three years can increase the monthly pension amount substantially, since both halves of the formula (service credit and age factor) move at the same time.
Why the Right Age Is Personal
None of this means later is always better for every teacher. Health, family circumstances, other income sources, and your own retirement income gap all factor into the right answer for you. This is one of the most common topics covered in a complimentary retirement review.