If you’re a PERA member in the Defined Benefit (DB) Plan, you’ll receive a monthly benefit check in retirement. But you also have access to an additional way to plan for retirement – saving in a PERAPlus 401(k) or 457 account.
The benefits of saving
Experts suggest having enough retirement income to replace 70 to 80 percent of the income you earned while working.
Your PERA DB plan provides reliable monthly income you can’t outlive. This benefit is an important foundation for your retirement income. You might also receive Social Security from any years you didn’t work for a PERA employer.
Saving additional money in a 401(k) or 457 can help add protection against inflation, medical needs, or long-term care. Or, it could simply increase your retirement budget, allowing you to spend more per month.
Finally, because it’s flexible, saving in these optional plans is adaptable as your life changes. If you foresee a period with higher personal expenses, you can decrease your contributions. If you have room in your budget, you can increase your savings.
Increasing your retirement savings increases the options you’ll have when you reach retirement age. You might be able to retire sooner. You might go into retirement with a larger monthly budget. With additional savings in a 401(k) or 457, you could begin your retirement with a greater sense of confidence or security. Whatever your reason, saving for your future self is always in your best interest.
To learn more about the PERAPlus plans or enroll, visit here.