Pennsylvania Retirement Strategies (SERS & PSERS)
For many PSECU members who work for the Commonwealth or in public schools, retirement is a "calculation" involving more than just savings. This tool focuses on your voluntary savings—the gap between your pension and your actual needs.
Understanding Your "Gap Gap"
In Pennsylvania, state employees often rely on SERS (State Employees' Retirement System) and teachers on PSERS. However, these defined benefit plans might not cover 100% of your pre-retirement income. That is where your PSECU savings come in:
The Pension: Provides a stable floor of income.
The Gap: The difference between your pension check and your grocery bill.
The Solution: Your IRA, 457(b), or Deferred Compensation savings estimated here.
Tax-Advantaged Saving in PA
Pennsylvania is one of the few states that does not tax retirement income from pensions or 401(k) distributions (after age 59½). This is a huge advantage for PSECU members retiring in-state.
Member FAQ
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Does PSECU offer wealth management?
Yes. Through PSECU Financial Services (PFS), available through LPL Financial, members can access professional investment advice.
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What is a "Share Certificate" Ladder?
A strategy where you buy multiple certificates with different maturity dates (1 year, 2 years, 3 years) to balance higher rates with periodic access to your cash.