The following chart summarizes the differences between the four retirement plans.

At age 62,

1) retired pay made equal to High-36

2) future multiplier made equal to High-36

3) future COLA continues at CPR - 1%

The below chart provides the basic criteria to determine which retirement plan applies to you.

Service members who remain on active duty or serve in the Reserves or Guard for a sufficient period of time (usually a minimum of 20 years) may retire and receive retired pay. Members who become disabled while on duty may be medically retired and receive a disability retirement. There are four basic retirement plans; Final Pay, High-36 Month Average, REDUX and Disability.

All four of the retirement plans determine initial monthly retired pay by taking the member's retired pay base and subjecting it to a percentage multiplier:

Retired Pay Base X Multiplier %

There are two methods for determining the retired pay base. They are the final pay method and the high-36 month average method. The final pay method, as the name implies, establishes the retired pay base equal to final basic pay. The high-36 method is the average of the highest 36 months of basic pay divided by 36. This is generally the last 3 years of service and is sometimes called high-3. The method used depends upon when the member first entered military service.

To decide which method applies to you, you must determine the date that you FIRST entered the military. This date is called the DIEMS (Date of Initial Entry to Military Service) or DIEUS (Date of Initial Entry to Uniformed Services). The date you first entered the military is the first time you enlisted or joined the active or reserves. This date is fixed---it does not change. Departing the military and rejoining does not affect your DIEMS.

Some individuals have unique circumstances that complicate determining their DIEMS. Here are a few examples:

Be aware that your pay date may be different than your DIEMS. Also, your DIEMS does not determine when you have enough time in the service to retire---it only determines which retired pay base method applies to you.

Not all Services have their DIEMS dates properly defined in their personnel records. If you have unusual circumstances and are unsure of when your DIEMS date is or believe your records show an incorrect DIEMS date, contact your personnel office to discuss your particular situation.

Now, based upon the date you initially entered the military, you can determine which retired pay base method applies to you.

For both the Final Pay and High-36 retired pay plans each year of service is worth 2.5% toward the retirement multiplier. For instance, 20 years of service would equate to a 50% multiplier. The years of service creditable are computed differently depending upon whether retirement is from full time active duty or from a reserve career. These differences are explained under the Active Duty Retirement and Reserve Retirement pages.

For the REDUX retirement plan, which applies only to an active duty retirement, the High-36 multiplier is reduced by one percentage point for each year that the member has less than 30 years of service at retirement. For instance, 20 years of service would equate to a 40% multiplier. This is discussed more fully under the Active Duty Retirement page.

For the Disability retirement plan, the multiplier may be the higher of 2.5% for each year of service or the disability percentage assigned by the Service at retirement. However, note that the disability retirement multiplier is capped at 75%.

In any case, the longer an individual serves, the higher the multiplier and the higher the retirement pay. For example:

All military retirements are protected from inflation by annual Cost of Living Adjustments (COLAs), based on changes in the Consumer Price Index (CPI) as measured by the Department of Labor. Under the Final Pay and High-36 retirement plans, the annual COLA is equal to percentage increase in the CPI year over year. This is a different index than the one used for active duty annual pay raises. The index used for active duty pay raises are based upon average civilian wage increases. Thus, retirement pay COLAs and annual active duty pay raises will differ. Also note; the annual COLA for the REDUX retirement method is reduced by one percentage point below the increase in the CPI.

Military retired pay is subject to a dollar for dollar offset when the retired member is also in receipt of VA disability compensation. However, there are two programs that restore partial or full retired pay when a member is eligible for concurrent DoD and VA payments. See the Concurrent DoD and VA Payment page for details.

Additionally, all retirees may choose to participate in the Survivor Benefit Plan (SBP) or the Reserve Component Survivor Benefit Plan (RCSBP), which enable the member to provide a continuing annuity to their family after death, based on the retired pay. The SBP and RCSBP programs are discussed in the benefits section.

Finally, remember that after age 62, Social Security will likely provide additional retirement benefits.

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Retirement

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New York State & Local Retirement System (NYSLRS)

Allentown Luther Crest (Visit our site) 800 Hausman Road Allentown, PA 18104 E-mail us 610-391-8229 Wesminster Village 803 N. Wahneta Street Allentown, PA 18103 610-434-6248 Ambler Gwynedd Estates (Visit our site) 301 Norristown Road Ambler, PA 190002-2796 215-628-4156 or 888-302-2287 Bethlehem Kirkland Village 1 Kirkland Village Circle Bethlehem, PA 18017 610-691-4500 Blue Bell Normandy Farms Estates (Visit our site) 9000 Twin Silo Drive Blue Bell, PA 19422-4202 214-661-1614 or 800-756-2287 Bryn Mawr Beaumont at Bryn Mawr (Visit our site) 601 North Ithan Avenue Bryn Mawr, PA 19010 E-mail us 610-526-7000 Carlisle Cumberland Crossings (Visit our site) 1 Longsdorf Way Carlisle, PA 17015 E-mail us 717-240-6013 Chamberburg Menno Haven Retirement Communities (Visit our site) 2227 Scotland Avenue Chamberburg, PA 17201 E-mail us 800-222-6695 Cornwall Cornwall Manor (Click for details) P.O. Box 125 Cornwall, PA 17016 800-222-2476 Doylestown Pine Run Community (Visit our site) 777 Ferry Road Doylestown, PA 18901-2199 E-mail us 800-992-8992 Elizabethtown Masonic Village at Elizabethtown (Visit our site) One Masonic Drive Elizabethtown, PA 17022 E-mail us 717-361-5080 Fort Washington Fort Washington Estates (Visit our site) 735 Susquehanna Road Fort Washington, PA 19034-1798 215-628-4156 or 888-302-2287 Frederick Frederick Living (Visit our site) 2849 Big Road (Route 73) Frederick, PA 19435-0498 E-mail us 610-754-7878 Gladwyne Waverly Heights (Visit our site) 1400 Waverly Road Gladwyne, PA 19035 E-mail us 610-645-8764 Glen Mills Maris Grove (Visit our site) (Welcome Center) 117 Brinton Lake Road Glen Mills, PA 19342 610-459-1090 or 800-833-4152 Gwynedd Foulkeways at Gwynedd (Visit our site) 1120 Meetinghouse Road Gwynedd, PA 19436 E-mail us 215-643-2200 Hanover Homewood at Plum Creek (Visit our site) 425 Westminster Avenue Hanover, PA 17331 E-mail us 717-637-4166 Harleyville Peter Becker Community 800 Maple Ave. Harleysville, PA 19438 215-256-9501 Haverford The Quadrangle 3300 Darby Road Haverford, PA 19041 610-642-3000 Holland Twining Village (Visit our site) 280 Middle Holland Road Holland, PA 18966 E-mail us 215-396-7236 Kennett Square Kendal-Crosslands Communities (Visit our site) P.O. Box 100 Kennett Square, PA 19348 E-mail us 610-388-7001 Lafayette Hill The Hill at Whitemarsh (Visit our site) 4000 Fox Hound Drive Lafayette Hill, PA 19444 E-mail us 215-402-8500 Lancaster Masonic Village at Elizabethtown (Visit our site) One Masonic Drive Lancaster, PA 17022 E-mail us 717-361-5080 Mennonite Home Communities (Visit our site) 1520 Harrisburg Pike Lancaster, PA 17601 E-mail us 717-390-4126 Willow ValleyRetirement Communities (Visit our site) 600 Willow Valley Square Lancaster, PA 17602-4866 E-mail us 800-770-5445 Lansdale Brittany Pointe Estates (Visit our site) 1001 Valley forge Road Lansdale, PA 19446-6502 215-855-3826 or 800-504-2287 Lewisburg Buffalo Valley Lutheran Village (Visit our site) 189 E. Tressler Boulevard Lewisburg, PA 17837 E-mail us 570-523-4285 Lewistown Ohesson (Visit our site) 276 Green Avenue Lewistown, PA 17044 E-mail us 717-242-5753 Lower Gwynedd Spring House Estates (Visit our site) 728 Norristown Road Lower Gwynedd, PA 19002-2110 888-365-2287 Manheim Pleasant View Retirement Community (Visit our site) 544 North Penryn Road Manheim, PA 17003 E-mail us 717-665-2445 Martinsburg Homewood at Martinsburg (Visit our site) 437 Givler Drive Martinsburg, PA 16662 E-mail us 814-793-1314 Mechanicsburg Bethany Village (Visit our site) 325 Wesley Drive Mechanicsburg, PA 17055 E-mail us 717-766-0279 Media Granite Farms Estates (Visit our site) 1343 West Baltimore Pike Media, PA 19063 E-mail us 610-361-8221 Lima Estates (Visit our site) 411 N. Middletown Road Media, PA 19063-4435 610-627-2590 or 888-398-2287 Riddle Village (Visit our site) 1048 West Baltimore Pike Media, PA 19063 E-mail us 610-891-3700 Middletown Frey Village (Visit our site) 1020 North Union Street Middletown, PA 17057 E-mail us 717-930-1302 New Holland Garden Spot Village (Visit our site) 433 S. Kinzer Ave. New Holland, PA 17557 E-mail us 717-355-6000 Newtown Pennswood Village (Visit our site) 1382 Newtown-Langhorne Road Newtown, PA 18940-2401 E-mail us 215-504-1122 Newtown Square Dunwoody Village (Visit our site) 3500 Westchester Pike Newtown Square, PA 19073 E-mail us 610-359-4438 Newville Green Ridge Village (Visit our site) 210 Big Spring Road Newville, PA 17241 E-mail us 717-776-8200 Oxford The Woods at Oxford Manor 7 Locust Street Oxford, PA 19363 610-932-2900 Palmyra Lebanon Valley Brethern Home 1200 Grubb Street Palmyra, PA 17078 717-838-5406 Philadelphia Logan Square East 2 Franklin Town Blvd. Philadelphia, PA 19103 215-563-1800 Pittsburgh Asbury Heights 700 Bower Hill Road Pittsburgh, PA 15243 412-571-5165 Pittston The Wesley Village 211 Roberts Road Pittston, PA 18640 717-655-2891 Reading The Heritage of Green Hills (Visit our site) 200 Tranquility Lane Reading, PA 19607 E-mail us 484-269-5100 Rydal Rydal Park (Visit our site) 1515 The Fairway Rydal, PA 19046 E-mail us 215-885-6800 Sewickley Masonic Village of Sewickle y (Visit our site) 1000 Masonic Drive Sewickley, PA 15143 412-749-6862 Southampton Southampton Estates (Visit our site) 238 Street Road Southampton, PA 18966 888-311-2287 State College Foxdale Village 500 East Marylyn Ave. State College, PA 16801 814-238-3322 The Village at Penn State (Visit our site) 361 Presidents Drive State College, PA 16803 E-mail us 814-238-1949 or 800-238-3173 Telford Lutheran Community at Telford (Visit our site) 235 North Washington Street Telford, PA 18969 215-723-9819 Topton The Lutheran Home at Topton (Visit our site) One South Home Avenue Topton, PA 19562 E-mail us 610-682-1413 Upper St. Clair Friendship Village of South Hills (Visit our site) 1290 Boyce Road Upper St. Clair, PA 15241 E-mail us 724-941-3100 Warminster Anns Choice Retirement Community (Visit our site) 235 East Street Road Warminster, PA 18974 800-576-1453 Christs Home Retirement Community (Visit our site) 1220 W. Street Road Warminster, PA 18974 215-956-2270 West Brandywine Freedom Village at Brandywine (Visit our site) 15 Freedom Boulevard West Brandywine, PA 19320 484-288-2600 West Chester Wellington at Hersheys Mill (Visit our site)A Benchmark Signature Living Community 1361 E. Boot Road West Chester, PA 19380 E-mail us 484-653-1200 Willow Street Willow Valley Communities (Visit our site) 450 Willow Valley Lakes Drive Willow Street, PA 17584 E-mail us 717-464-6055 Worcester Meadowood (Visit our site) 3205 Skippack Pike Worcester, PA 19490-0670 610-584-1000 top

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Pennsylvania - the Retirement Living Information Center

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NEW FREEDOM, PA All Active Retirement Communities and Homes

Albany Bnai Brith Parkview Apartments 400 Hudson Avenue Albany, NY 12203 518-465-2293 Armonk The Bristal Assisted Living in Armonk (Visit our site) 90 Business Park Drive Armonk, NY 10504 E-mail us 914-219-5875 Bronx The Judith Lynn Assisted Living Facility 1800 Waring Avenue Bronx, NY 10469 718-379-4400 The Thomas Jefferson Assisted Living Facility 650 E 104th Street Brooklyn, NY 11236 718-649-0700 Clinton Cherrywood (Visit our site) by JENSEN Communities 1 Cherrywood Circle Clinton, NY 13323 (Located near Utica) 315-732-6840 Croton-on-Hudson Springvale Apartments (Visit our site) 2-T Skytop Drive Croton-on-Hudson, NY 10520 E-mail us 914-737-6954 East Meadow The Bristal Assisted Living at East Meadow (Visit our site) 40 Merrick Avenue East Meadow, NY 11554 E-mail us 516-542-0800 East Northport The Bristal Assisted Living at East Northport (Visit our site) 760 Larkfield Road East Northport, NY 11731 E-mail us 631-858-0100 Getzville Weinberg Campus (Visit our site) 2700 North Forest Road Getzville, NY 14068 E-mail us 716-639-3311 Ithaca Kendal at Ithaca (Visit our site) 2230 N. Triphammer Road Ithaca, NY 14850 E-mail us 607-266-5300 Longview, an Ithacare Community (Visit our site) 1 Bella Vista Drive Ithaca, NY 14850 E-mail us 607-375-6300 Jamestown Heritage Village Retirement Campus (Visit our site) 3017 North Main Street Jamestown, NY 14701 716-487-6874 Kenoza Lake Lakeville Manor 56 N. Swiss Hill Road Kenoza Lake, NY 12750 845-482-4893 Lake Grove The Bristal at Lake Grove (Visit our site) 2995 Middle Country Road Lake Grove, NY 11755 E-mail us 631-676-7580 Lynbrook The Bristal Assisted Living at Lynbrook (Visit our site) 8 Freer Street Lynbrook, NY 11563 E-mail us 516-593-2424 Massapequa The Bristal Assisted Living at Massapequa (Visit our site) 400 County Line Road Massapequa, NY 11758 E-mail us 516-691-0706 Mount Vernon The Wartburg Adult Care Community (Visit our site) 1 Wartburg Place Mount Vernon, NY 10522 E-mail us 914-699-0800 New York The Hallmark, Battery Park City 455 North End Avenue New York, NY 10282-5304 212-791-2500 North Hills The Bristal Assisted Living at North Hills (Visit our site) 99 South Service Road North Hills, NY 11040 E-mail us 516-869-1300 North Woodmere The Bristal Assisted Living at North Woodmere (Visit our site) 477 Hungry Harbor Road North Woodmere, NY 11581 E-mail us 516-336-2600 Peekskill Drum Hill Senior Living Community (Visit our site) 90 Ringgold Street Peekskill, NY 10566 E-mail us 914-788-8860 Pittsford The Highlands at Pittsford (Visit our site) 100 Hahnemann Trail Pittsford, NY 14534 E-mail us 585-586-7600 Rochester Cloverwood (Visit our site) 95 Allens Creek Road Rochester, NY 14618 585-218-8800 The Gables at Brighton 2001 S. Clinton Avenue Rochester, NY 14618 716-461-1880 Rivers Run (Visit our site) 50 Fairwood Drive Rochester, NY 14623 E-mail us 585-292-5440 The Summit at Brighton (Visit our site) 2000 Summit Circle Drive Rochester, NY 14618 585-442-4500 ext. 2306 Sayville The Bristal Assisted Living at Sayville (Visit our site) 129 Lakeland Avenue Sayville, NY 11782 E-mail us 631-563-1160 South Setauket Jeffersons Ferry Lifecare Retirement Community (Visit our site) One Jefferson Ferry Drive South Setauket, NY 11720 E-mail us 888-233-1330 Valhalla Westchester Meadows (Visit our site) 55 Grasslands Road Valhalla, NY 10595 914-989-7800 Westbury The Bristal Assisted Living at Westbury (Visit our site) 117 Post Avenue Westebury, NY 11590 E-mail us 516-333-9828 The Regency Assisted Living Center 3400 Brush Hollow Road Westbury, NY 11590 516-334-3838 White Plains The Bristal Assisted Living at White Plains (Visit our site) 305 North Street White Plains, NY 10605 E-mail us 914-681-1800 top

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New York - Retirement Living

A recent study found that retirees experience an immediate boost in happiness, and the positive effects remain four years after their final day on the job.

The news seems to be filled with doom and gloom predictions about what baby boomers will face in retirement. Study after study says those who are heading into their final working years have skimpy savings which will, undoubtedly, lead to unsatisfying golden years.

However, a study from researchers at George Mason University and Utah State University offers hope for boomers who are worried they are facing a dismal retirement. Using data from the University of Michigan Health and Retirement Study, researchers discovered retiring is associated with not only a marked increase in happiness but also improved health.

"In some ways, it is surprising," says Sita Slavov, a public policy professor at George Mason University and co-author of the 2014 report. "You hear anecdotes of people who end up hating retirement. But it's also important to keep in mind that we are looking at the effect of retirement for the average person."

Happiness Is Immediate, Health Takes a While

One of the chief takeaways of Slavov's research is that people report an immediate uptick in happiness after retirement. While other research has recorded the same phenomenon, those studies typically indicate that happiness regressed and flattened over time. However, the George Mason and Utah State University research found the positive impact of retirement still remained four years after a person left the workforce.

Good health, on the other hand, took four years to arrive for retirees. "We suspect it's because health changes slowly," Slovav says. "It takes time for lifestyle changes to show up in the form of improved health."

Slovav adds that her team looked into whether health and happiness outcomes differed based on a person's type of work. However, there were no significant differences between those who reported having physically demanding jobs and other workers.

"One other interesting thing." Slovav says, "[is] we didn't find any evidence of long-term changes in health care utilization i.e. doctor visits and prescription drug use after retirement. So the improvements in health do not appear to be associated with increased health care costs."

A Happy Retirement Without Much Cash

While Slavov's findings seem to make a strong case for early retirement, doing so may feel like an unattainable dream for workers with limited savings. Fortunately, finance experts say you don't need a huge nest egg to have a happy retirement.

"Happiness is a positive cash flow," says Ken Moraif, founder and senior advisor of Dallas-based financial firm Money Matters. He argues that people with modest means who keep their expenses low can be happier than those who have more money coming in each month but spend it all. "You can have fancy cars and fancy houses, but you're going to be miserable all the time," he says of the latter group.

Feeling in control of the future may also be a factor that helps fuel retiree happiness, regardless of the size of a bank account. Andrew Meadows, vice president of brand + culture at Ubiquity Retirement + Savings and producer of the documentary "Broken Eggs," says he sees seniors getting creative with figuring out how to stay happy while also make ends meet after quitting their jobs.

"When I worked on 'Broken Eggs,' I found so many people living in their RVs in semi-permanent spots," he says. While living out of an RV saved money, Meadows says it wasn't a desperate move for the retirees he met. "It never seemed like [they] were forced out of their homes. It seems like people planned on that life in retirement."

Take Steps Now to Ensure Happiness Later

Although the research is promising, you shouldn't expect retirement to magically improve your life. Taking some small steps while working may help boost happiness and health once you exit the workforce.

Joe Heider, president of Cirrus Wealth Management in Cleveland, advocates for having a plan for retirement, and he doesn't mean a financial plan. "Many people think of retirement as a permanent vacation, but it can lead to boredom," he says.

To prevent long days spent doing nothing, Heider suggests pre-retirees create a plan for what they expect to do on a daily basis. A light daily schedule may be a welcome change at first, but as retirement progresses, staying engaged in a variety of activities can be key to happiness and healthiness.

Staying active is almost important. "You can have a positive cash flow, but if your health is poor, you're going to be unhappy," Moraif says. To that end, Moraif says his firm counsels clients to plan to live to 100 and take care of their bodies and bank accounts accordingly.

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Retirement: Your Ticket to a Happier, Healthier Life - US News

I admire your optimism. At a time when many, if not most, investors are fixated on market volatility and worried about losing their shirts should the market melt down in the not-too-distant future, you're thinking about saving and investing for the long-term.

But as much as I like your upbeat outlook, I think you also need to temper it with some realism. Ending up with a $1 million IRA, traditional or Roth, isn't a pipe dream. A General Accounting Office report released last year found that some 630,000 IRAs had balances greater than $1 million. But the GAO also found that 99% of IRAs had balances below the $1 million mark, with a median account balance of just $34,000.

And the IRAs that did have seven-figure balances weren't funded solely by yearly contributions. The balances included money inherited from other IRAs as well as money that had been rolled over from 401(k)s and defined-benefit plans. Indeed, the GAO notes that it would have required double-digit returns greater than the Standard & Poor's 500-index actually delivered to hit the $1 million mark from annual IRA contributions alone.

I think it's fair to say that this isn't a goal you should expect to reach quickly, especially considering that you are starting to fund an IRA at a time when some experts are predicting subpar returns. ETF guru Rick Ferri has forecast a 7% annual long-term return for stocks and roughly 4% for Treasury bonds, assuming 2% inflation.

If you make the current $5,500 IRA maximum contribution every year and earn a 6% return each year, it would take 42 years for your IRA balance to reach $1 million. You'd actually get there several years sooner, assuming you contribute the IRA maximum as it increases with inflation and also begin making catch-up contributions (an additional $1,000 a year currently) once you hit age 50. Either way, we're talking about a very long time.

But while your $1 million goal may be daunting, that doesn't mean it's not achievable, or that you shouldn't try. The key is to go about it the right way.

Your main focus should be on saving as much as you can. Assuming you have sufficient income and the discipline to save, there's no reason you should limit yourself to funding just an IRA. In fact, by expanding your savings effort to a workplace plan such as a 401(k), where annual contribution limits are a lot higher ($18,000 this year, plus a $6,000 catch-up for people 50 and up), you can build a bigger balance much more quickly, and roll that money into an IRA later on.

For example, if you fund both a 401(k) and an IRA to the current max not including catch-upsi.e, invest $18,000 in a 401(k) plus $5,500 in an IRA for a total of $23,500 a yearyou would have a $1 million combined balance in 22 years, assuming a 6% annual return. That's too ambitious a savings goal for most people. And even if you could manage it, you would also want to confirm you're eligible to fund both an IRA and a 401(k) without resorting to the "back-door" route to a Roth IRA, which you can check by going to Morningstar's IRA Calculator. But the idea is that you'll have a larger balance and increase your odds of getting to seven figures if you save more than the IRA contribution limit.

The way you invest your savings will also determine the eventual balance of your IRA. Clearly, higher returns will lead to a larger balance more quickly. For example, if you earn 8% a year instead of 6%, it will take you 35 years instead of 42 to achieve a $1 million balance investing $5,500 a year in an IRA, and 19 years instead of 22 if you invest a combined $23,500 a year in a 401(k) and IRA.

Related: An investing strategy for a $1 million retirement nest egg

But earning more on your savings isn't just a matter of dialing up a higher return. You've also got to take more risk, and that increases the volatility of your portfolio and raises the possibility that your balance could get hammered if the market nosedives. If you panic and sell during such a meltdown, you could very well end up with a lower return than you would have earned with a less aggressive strategy.

A better approach: go with a portfolio that will give you a shot at realistic gains but you'll also be comfortable sticking with during major market setbacks. You can create such a portfolio by completing a risk tolerance test. Vanguard offers an asset allocation-risk tolerance tool that will recommend a mix of stocks and bonds based on your answers to 11 questions designed to gauge the level of risk you're comfortable taking. The tool will also show you how the recommended portfolio, as well as others more conservative and more aggressive, performed in both good and bad markets, so you can decide which is the best fit for you.

Related: 2 ways to a more secure retirement

As for choosing investments for your portfolio, I recommend you focus mostly, if not exclusively, on broadly diversified low-cost index funds or ETFs, many of which charge just 0.20% of assets or less in annual expenses. The reason is simple. The less of your return you give up to fees, the more quickly your savings are likely to grow, and the more likely you'll reach your ambitious goal.

One final note: For whatever reason, you seem to have decided to do a Roth IRA. You should know, however, that a Roth isn't automatically a superior option just because qualified withdrawals are tax-free. Generally, a Roth is a better deal than a traditional IRA if you expect to be in the same or higher tax bracket when you withdraw your contributions and investment earnings in retirement. But if you think you'll face a lower marginal tax rate in retirement, you may be better off doing a traditional IRA. Given that it's difficult for most people to tell what tax rate they'll face many years in the future, it can make sense to hedge your bets by keeping some money in both Roth and traditional accounts.

The most important thing, though, is to save diligently and invest whatever you manage to save in a portfolio you'll be able to stick with whether the market is soaring or slumping. Do that, and you'll know you've taken your best shot at achieving a secure retirement, even if you fall short of your $1 million goal.

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CNNMoney (New York) September 30, 2015: 9:41 AM ET

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How to save $1 million for retirement using an IRA - Sep. 30 ...

9/16/2015 PA SERS Approves New Investments Reports Quarterly Investment Performance The Board of the Pennsylvania State Employees' Retirement System today approved four investments and announced the fund's investment performance through June 30.

8/14/2015 Gov. Wolf Appoints Chairman Gov. Tom Wolf has appointed David R. Fillman as Chairman of the Board for SERS. Mr. Fillman has been serving on the SERS Board for the past 14 years.

Mr. Fillman replaces Glenn E. Becker, whose term expired in May. Mr. Becker will continue to serve the SERS Board.

7/9/2015 Pension Reform Update Earlier today, Governor Tom Wolf vetoed Senate Bill 1, which would have instituted retirement benefit changes for current and prospective SERS members.This veto was in addition to his recent veto of the 2015-16 General Fund Budget.

If you are a current SERS member who has not yet retired, please know that SERS will continue to monitor legislation that could affect your future benefits and notify you of any important information.

If you are a SERS retiree, rest assured that your annuity payments will continue as scheduled and are unaffected by any budget negotiations and impasse.

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Pennsylvania State Employees' Retirement System

Overall If you have been thinking about making a move to one of the best places toretire in Pennsylvania we can help you make an informed choice. This website will give you useful information about the best places to retire in Pennsylvania, including the top active adult retirement communities. Pennsylvania, the Keystone state, had just under 12.8 million people in 2012. It has two large cities, Pittsburgh and Philadelphia; many mid-sized cities like Erie and Lancaster; and many small towns and rural areas. The north central portions of Pennsylvania tend to be sparsely populated and offer excellent outdoor recreation. PA has 50 miles of coastline on Lake Erie. The Wikipedia entry for Pennsylvania has more facts.

Pennsylvania Climate The Pennsylvania climate is called humid-continental. There are 4 seasons. Summers are hot and winters are cold with frequent snowstorms. The northwestern part of the state experiences lake-effect snowstorms from Lake Erie.

Economy & Home Prices Pennsylvania's 2011 per capita income, $27,824, was near the United States average. Median home prices are usually much less expensive than in rest of the U.S. The median home in the Erie area sold for $104,700 vs. the national median of $176,600 in the first quarter of 2013. In the Philadelphia area the median home goes for $197,700. Wealthy suburbs around Philadelphia are much more expensive, although the statewide median was $138,000 in early 2012.

Pennsylvania Taxes

Tax Burden:Pennsylvania has much higher than average tax burden - at 10.2% it is the 11th highest in the nation.When it comes to taxation of retirees, however, its reputation as a high tax state is not exactly accurate.

Marginal Income Tax Rates.When it comes to taxable income, PA has one of the lowest income tax rates - a flat rate 3.07% (although in certain towns there are additional income taxes).

Retirement Income Exemptions.Military incomes are not taxed.Commonly recognized pension, old age, or retirementbenefits paid after becoming eligible to retire, and retiring are not taxable.

Social security exemption.Social security is not taxed.

Sales Tax:State sales tax is 6%.

Property Taxes:Property taxes are one reason why the state has a reputation as a high tax state.

Miscellaneous Taxes.PA has one of the highest gasoline taxes.

Estate and/or Inheritance Taxes.Pennsylvania is one of 7 states that collects an inheritance tax.

Linkto Pennsylvania Department of Revenue

Certified Retirement Communities Pennsylvania does not have a certified retirement community program.

Best retirement communities in Pennsylvania Pennsylvania can be a great state for active adults and people over 50. It has a very low cost of living and many livable cities and small towns. Some of the best places for retirement in Pennsylvania are its charming small college towns like Carlisle, Lewisburg, Meadville, Titusville, Lancaster, and Swarthmore. Located in State College is one of the newer phenomemons in retirement living, a university related retirement community, The Village at Penn State. Pittsburgh is not only a great bargain but it is a livable city that is enjoying a renaissance. It has been singled out as America's 8th most literate city. Philadelphia offers an excellent urban retirement with plenty to do and places to live.

Free eBook - Baby Boomers Guide to Selecting a Retirement Community - 16 Factors Download this free eBook and use its fun exercises to help you find your perfect active adult retirement community.

Click on the Pennsylvania retirement town reviews on the right to find out more.

Link:
Pennsylvania retirement guide - Topretirements.com

Retirement planning is very complex and varies by individual. The following 4 retirement calculators are designed for different retirement planning situations financially.

This calculator gives out saving guideline based on your retirement saving target.

If you have your own retirement saving schedule, this calculator estimates the amount you can withdraw every month once retired.

If you are retired or close to retirement, this calculator estimates how long your retirement saving lasts based on the amount you plan to withdraw every month.

Retirement occurs when people end employment completely. Some people may "semi-retire" by decreasing their work hours. The retirement age varies for different countries, but it is generally between the ages of 55 and 70. Also, the age is different for males and females in some countries. Most people choose to retire when they are ready, but some are forced to retire due to various reasons, mostly due to illness or disability.

One of the most important factors that affect the decision to retire is whether a person is financially "ready" to retire. Planning for retirement means making sure that you will have enough income to live on comfortably when you decide to stop earning your own living. In general, wealthy people tend to retire earlier.

Today, the amount required to save for a comfortable retirement is considerably larger than it was for the Baby Boomer generation. Experts now suggest that you should save at least eight times your salary at the end of your career to make sure that you will have enough to live on through many years in retirement. In the United States, more than 60% of workers believe that they will need to save at least $500,000 before they can retire. Yes, that is a great deal of savings, so you should start as early as possible, making use of the best retirement savings plans, and keep it up without interruption.

In most situations, people financially rely on the following programs after retirement:

Social Securitythis is a social insurance program run by the government to provide protection against poverty, old age, disability, etc. In the United States, approximately one-third of the working population expect Social Security to be their major source of income after retirement. Conversely, more than 50% of retirees expect Social Security to be their major source of income.

Pensionmost public servants in the United States are not covered by Social Security, but by pension programs. Some private employers also provide pension benefits.

Retirement Savings Plansthis normally refers to 401Ks and IRAs (Individual Retirement Accounts) in the United States. These are the savings from personal income, including tax benefits. Many employers also provide a 401K "match" on top of an employee's personal contribution.

Investment Incomethis is income such as stock dividends, real estate rental income, bank savings account interest, and so on.

Personal Savingsthis is the money you save in your bank, such as saving accounts, CDs (Certificates of Deposit), checking accounts, etc.

To financially plan your retirement, please use this retirement calculator to estimate each source of income listed above and add them up.

One reason people tend to underestimate their retirement saving needs is that they fail to properly account for the impact of inflation. We live at a time when inflation is relatively low, and so we do not perceive its effects. But inflation accumulations bit by bit; prices go up in one area like foodstuffs, and later in another like housing. Over a period of years these price increases can have a profound effect on how much money you will need in retirement.

Remember that inflation won't stop once you retire. Prices will keep going up over that 25 to 30 year period. So you must take into account the continuing erosion of spending power that will take place. You have to bear in mind that every $100,000 you have saved up may only have a real worth of $70,000 when you retire, and even less five years later. The average inflation rate in the United States for the past 30 years has been around 4.3%. Please check the Inflation Calculator for more information.

It's important to make use of the best instruments available to save for retirement. You will have your social security, of course, but we are warned that it will deliver less in the future. Some workers, particularly government employees, have pension plans. Then you should get started as early as possible with Retirement Savings Plansthis normally refers to 401Ks and IRAs (Individual Retirement Accounts) in the United States. The former calls for defined contributions from your salary that are matched by your employer, and both remain free of tax while you keep the money in the plan. The latter allows you to make tax-exempt savings contributions. You should also make use of CDs and money-market accounts for risk-free savings at the best interest rates available.

All of this will help you to beat inflation in the long term, and the retirement calculator will help you to determine how much your money will be worth.

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Calculator Retirement