Rounding Out Your Plans
You know how important it is to have a plan for your retirement years, and we don't just mean what kind of fish you're going to catch or what project you're going to take on. Everyone, regardless of age, should know how much money will be needed in retirement, and have a plan for reaching that goal. Here are a few items you may not have considered.
Increasing your FAC
You know that your final average compensation, or FAC, affects your pension amount. Your FAC is the average of your final two years of compensation.
Increasing your FAC will increase your pension amount. The best way to do that, of course, is to accept that pay raise or promotion you deserve. Another is to work overtime or save up your annual leave.
Taking your annual leave as a payout, rather than using it before you retire, might boost your FAC and thereby your pension amount. The most common types of leave payouts that can count in your FAC include up to 240 hours of annual leave paid at retirement, compensatory (comp) time paid at retirement, and longevity earned during the FAC period.
Click for more details on what counts and does not count in your FAC.
Catch up on your deferred compensation
Don't overlook your deferred compensation 401(k) and 457 Plans as a way to boost your income in retirement. Remind yourself of the tax advantages when you contribute to your account through biweekly payroll deductions. And refresh your knowledge of all the higher limits and additional incentives the law permits for savers age 50 and older.
If you'd like more information or wish to increase your deferred compensation contributions, contact Voya Financial® soon. Most transactions can be handled via Voya's fully interactive website at https://stateofmi.voyaplans.com/eportal/welcome.do, or you can call 800-748-6128 during normal office hours. You might also want to review Voya's Guide to Termination or Retirement Distributions so you know the different ways you can have your account paid out to you when the time comes.