CalSTRS Pension Estimator
Estimate your California State Teachers' Retirement System (CalSTRS) monthly pension based on years of service, age, and final salary.
Key Components of Your Pension
To understand your estimate, you must know the three variables that drive the formula.
Service Credit
This represents the "Years worked." It includes your years of active teaching, but you can also purchase "air time" or service credit for previous eligible work, maternity leave, or military service to increase your total.
Age Factor
This is your retirement multiplier. Typically 2% at age 60 or 2.4% at age 62. The longer you wait to retire, the higher your age factor, significantly increasing your monthly payout.
Final Compensation
This is your highest average salary earnable. Depending on your hire date, this is calculated using your Highest 12-month or Highest 36-month average.
How the CalSTRS Formula Works
We demystify the math so you know exactly how your number is calculated. This tool computes the maximum standard amount (unreduced benefit).
Pension = Service Credit × Age Factor × Final Compensation
Worked Example:
If you earn $80,000 (Final Compensation), work 25 years (Service
Credit), and have a 2% factor:
25 × 2% × $80,000 = $40,000 annually.
How to Use This Pension Estimator
- Locate your "Annual Statement" on the myCalSTRS member portal.
- Find your "Highest Annual Salary" and current "Service Credit" total.
- Select your Benefit Formula tier (check your hire date: 2% at 60, 2% at 62, or 2.4% at 62).
- Click Calculate to see your projection.
Pro Tip
Use the "Presets" feature to model different career trajectories, such as retiring at 55 vs. 62, to see the impact on your monthly income.
Understanding Your Results
Income Replacement Ratios
Financial experts suggest you need 80-90% of your pre-retirement income to live comfortably. Use the ranges below to assess your standing.
< 50% (Insufficient)
You may struggle to cover basics. Delaying retirement is often necessary.
50-60% (Low)
Needs significant supplemental savings (403b) because CA teachers do not have Social Security.
60-80% (Target)
Adequate, but strict budgeting is required. Note: Health insurance costs will be deducted from this gross amount.
80-100%+ (Excellent)
Healthy replacement ratio. You have likely maximized service credit and salary.
CalSTRS vs. Private Sector Retirement
Comparing the Defined Benefit (DB) model of California teachers with the Defined Contribution (DC) model typical in the private sector.
| Feature | CalSTRS Pension (DB) | Private 401(k) (DC) |
|---|---|---|
| Risk | Borne by Employer (CalSTRS) | Borne by Employee |
| Guarantee | Lifetime check (Formula based) | Depends on market performance |
| Social Security | None (For teaching service) | Eligible for full SS benefits |
| Contribution | Mandatory fixed % | Voluntary (often with match) |
Why Your Estimate Might Change
- Cost of Living Adjustment (COLA): CalSTRS provides a 2% annual adjustment to the purchasing power of your base benefit, compounded annually.
- Cash Balance: Some newer members (hired 2013+) may have a hybrid pension component affecting final calculations.
- Purchasing Service: Buying "air time" or eligible service credit can increase your years of service, raising your monthly income.
- Unused Sick Leave: In many districts, unused sick leave can be converted to service credit at retirement, boosting your final calculation.
When to Use This Calculator
Scenario 1: "Can I retire at 55?"
Input your expected age and service to see the penalty for early retirement. Compare the reduced monthly income against your budget to see if it's feasible.
Scenario 2: "Should I buy service credit?"
Calculate the difference in monthly income with and without the additional years of service to determine the "break-even" point for the cost of purchase.
Scenario 3: "Is my pension enough?"
Compare the calculator's result against your current expenses. Remember to account for out-of-pocket health costs in retirement.
Limitations of This Estimator
Disclaimer
This tool provides an estimate based on standard formulas. It does not include health premium deductions, which can be significant.
It does not calculate "Industrial Disability" retirement or "Community Property" divisions in case of divorce.
Common Mistake: Ensure you use your "Highest Annual Salary," not your current monthly take-home pay, for accurate results.