Financial Planning for ASRS Members
Your Arizona State Retirement System pension is one of the biggest assets you will ever own, and one of the few retirement decisions you can't undo. The benefit option you choose at retirement is permanent, and so is the date you pick.
Teachers, state employees, public safety staff, and university and local government workers across the Valley build careers around the ASRS pension. The harder questions come in the last few years before you retire: when to leave, which benefit option protects your spouse, how your pension fits with Social Security and savings, and what returning to work would do to your benefit.
At TrueWealth Financial Partners, we are fee-only fiduciaries who help ASRS members turn a pension, a supplemental savings account, and a few good decisions into an income plan they can rely on. We serve members in Scottsdale, Phoenix, and across Arizona.
ASRS Retirement Planning FAQs
ASRS members often ask us how to line up their pension with everything else. Here are straight answers to the questions we hear most. For plan-specific rules, see our ASRS resource page. Your ASRS benefit is guaranteed by the plan, but how you use it with the rest of your finances is up to you. As fee-only fiduciaries, we are paid by you, not by commissions, and we are legally bound to put your interests first when we help you decide.
-
Often yes, because your pension alone may not cover everything. A supplemental account gives you flexibility the pension doesn't, including the ability to adjust withdrawals each year. Which type you use, and whether to go pre-tax or Roth, depends on your tax bracket now and what you expect it to be in retirement.
-
Many Arizona public employees also pay into Social Security, so you may collect both. Some employees are excluded and may not, so check your own situation. When you claim affects your lifetime benefit, so we compare claiming ages against your pension and savings to find the combination that gives you the steadiest income.
-
ASRS offers a monthly health insurance premium benefit to eligible retirees who meet service requirements and carry qualifying coverage. It reduces your premium; it is not a full subsidy. If you retire before 65, you need a plan for coverage until Medicare starts, so we map your options against your budget before you set a retirement date.
-
Your pension and pre-tax account withdrawals are generally taxed as ordinary income at the federal level, and Arizona may tax them at the state level. Roth withdrawals are generally tax-free. Because the mix matters, we model which accounts to draw from each year, and whether Roth conversions in lower-income years could reduce future taxes.
-
Because your pension decisions are permanent, you want advice with no stake in what you choose. A fee-only fiduciary is paid directly by you and is legally required to act in your best interest. We don't earn commissions on products, so our job is to help you pick the option that fits your life.
-
It depends on when you joined ASRS. Members who started before July 1, 2011 can qualify for a full benefit by combining age and service points. Members who joined later need to meet specific age and service combinations instead. Early retirement is available at a younger age but permanently reduces your benefit. Confirm your own date on your ASRS account, then plan around it.
-
Your monthly pension is based on your years of service credit, your average monthly compensation over your highest-paid period, and a multiplier that rises with longer service. The averaging period depends on when you joined. Your ASRS benefit estimate shows your numbers, and we can stress-test it against your spending to see whether it covers what you need.
-
The right option depends on your spouse's age and health, your other income, and how much survivor protection you need. A higher monthly benefit usually means less, or nothing, for a survivor after you pass. Because the choice is generally permanent at retirement, we compare each option against your household's income needs before you sign.
-
ASRS has rules for retirees who return to work, and they depend on your hours, how long you were retired, and the election you make. Working past certain thresholds can suspend your pension or limit your options. Check the rules before you accept any role, because a mistake can be expensive and hard to reverse.
-
For many members, the pension covers a large share of essential expenses but not all of them. The gap is usually healthcare, taxes, inflation, and the years before Social Security begins. We build a monthly income projection that adds your pension, savings, and Social Security, then test it against realistic costs, so you can see the gap before you retire.
ASRS Retirement Guides
Financial Planning Services for ASRS Members
-
ASRS Pension & Retirement Timing
Comparing retirement dates against your service credit, age, and benefit estimate
Understanding early retirement reductions before you commit to a date
Reviewing your ASRS benefit estimate and checking it against your actual plans
Mapping the gap years between your last paycheck and your first full pension check
-
Benefit Option & Survivor Planning
Comparing ASRS benefit options for you and your spouse
Weighing a larger monthly benefit against survivor protection
Coordinating your benefit option with life insurance and other income
Updating beneficiaries on your ASRS account and other retirement accounts
-
Supplemental Savings (457, 403(b), IRAs)
Choosing between pre-tax and Roth contributions for your final working years
Using catch-up contributions if you are 50 or older
Reviewing the investments and fees inside your supplemental plan
Rollover planning for when you leave your employer
-
Social Security & Medicare Coordination
Checking whether and how Social Security fits into your retirement income
Choosing a claiming age that works alongside your pension
Planning health coverage between retirement and Medicare
Understanding Medicare premium surcharges tied to income
-
Tax Planning for Pension & Savings Income
Projecting how your pension and withdrawals will be taxed
Roth conversion planning in the years between retirement and required distributions
Planning around Arizona state income tax on retirement income
Coordinating withdrawals to manage taxable income
-
Return to Work & Retirement Income Planning
Understanding how ASRS return-to-work rules could affect your pension
Building a monthly income plan from your pension, savings, and Social Security
Stress-testing your plan for inflation and healthcare costs
Planning for part-time work, consulting, or phased retirement
Retirement: Your greatest adventure awaits.
Let’s Get You Ready!
The next chapter of your life should be one of adventure, not financial anxiety. Stop worrying and start living with a coach that puts your needs first.
TrueWealth is a fee-only fiduciary financial advisor in Scottsdale, AZ.
No Annuities. No Commissions. No Worries.
Have a Question?
We find the easiest way to get answers is to schedule a 15-minute Intro Call with us, but if it’s just a quick question ask here!