Opening a secondary but separate retirement account from your ASRS benefit is an effective way to help provide for a more secure retirement. Even if you can only contribute a small amount now, opening such a plan early in your career will help set a more solid foundation for a well-diversified retirement portfolio.
It is important to remember that there are no provisions within the ASRS Defined Benefit plan for automatic benefit increases, such as cost of living adjustments. This is one reason we advocate for supplemental retirement savings.
The ASRS sponsors several voluntary savings plans that may be available to members, depending on who their employer is. All are managed by Nationwide Retirement Solutions, an independent financial services company, and overseen by the ASRS. In each of these plans, participants have access to high-quality, low-fee investment options that allow for individual management of accounts along with professional customer service and financial planning services.
To see plans that may be available to you, browse the information below or view our simple comparison chart. If, upon trying to enroll in a plan, you find your employer is not yet participating in the Nationwide savings plan you’re interested in, speak to your HR department. They can enroll your organization, which will allow you to enroll.
Note: your employer may offer additional supplemental savings plans! Check with your Human Resources department to find out.
Available Nationwide Savings Plans
Important: Your employer type determines which supplemental savings plans you’re able to join. Pay close attention to who each plan is designated for, and the appropriate website to visit in order to enroll.
Plans for State Agency & State University Employees
The primary plan available to employees of state agencies and universities is a 457(b) plan, managed by Nationwide and overseen by the ASRS.
The 457(b) Plan
- For employees of Arizona state agencies and Arizona state universities.
- Contributions can be either pre- or post-tax
- To enroll, or for additional information, visit ArizonaDC.com
Additional Information
Check out this brochure for the 457(b) plan for State Agencies and Universities for additional plan highlights, details, and frequently asked questions!
Plans for Non-State Agency & Non-State University Employees
There are primarily two different plans available to ASRS members who work for employers that are not a state agency or state university: a 457(b) Plan, and a 403(b) plan.
The 457(b) Plan
- For employees of educational entities (except university employees), local municipalities, counties, fire districts, etc.
- Contributions can be either pre- or post-tax
- To enroll, or for additional information, visit AzSSDP.com
The 403(b) Plan
- For employees of educational entities(except university employees)
- Contributions can be either pre- or post-tax
- To enroll, or for additional information, visit AzSSDP.com
Are you planning for all three pieces of retirement income?
While your ASRS pension benefit may provide a large portion of your post-retirement income, ideally most have additional income from other sources such as Social Security and additional personal savings to complete their retirement finance picture.
1) ASRS Pension Benefit
2) Social Security Benefit
3) Personal Savings
An ASRS pension benefit provides a guaranteed lifelong monthly benefit, but it's not meant to provide 100% of your post-retirement income or provide cost-of-living adjustments. The average ASRS benefit payment for a retiree who contributed to the ASRS for 20 or more years is approximately $1,700 a month, but that amount will vary for each retiree based on salary history, years of service, and other important factors.
Most all ASRS members also participate in the federal Social Security plan. The average Social Security benefit is approximately $1,600 per month or about $19,200 per year. Social Security does have provisions for providing cost of living increases, predicated upon Congressional approval.
You can receive personalized estimates of your future Social Security benefit by visiting SSA.gov and creating an account.
While the ASRS offers several supplemental saving plans administered by Nationwide Retirement Solutions, which savings plans are available to you will depend upon your particular employer. Also, your employer may offer other savings plan options for you to investigate in addition to the plans offered through the ASRS.
Additionally, anyone may set up a tax-deferred savings plan on their own through a bank or qualified financial institution.
