Nearing Retirement Members

Budgeting For Retirement: Potential Health Insurance Costs

Thu, 30 Oct 2025 23:52:06 +0000

Budgeting For Retirement: Potential Health Insurance Costs

[email protected] Thu, 10/30/2025 - 16:52

Budgeting For Retirement: Potential Health Insurance Costs

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One common budgeting oversight we see from members planning their retirement is comparing their estimated future pension amount against their current monthly bills to see if they can afford to retire. The oversight? Focusing on what their bills currently are, not what their bills will be. This is especially true when it comes to health insurance costs – and even more so if you won't be 65 and Medicare-eligible when you retire.

Many don't think about health insurance costs changing after retirement, but it can be an unwelcome surprise. Remember: while working and receiving health insurance benefits through your employer, your employer is likely either partially or fully subsidizing your health insurance, lowering the cost to you. The same is true when you're 65 and Medicare-eligible – the government starts subsidizing your healthcare costs.

But what happens if you retire before 65? You're likely going to be paying the full, unsubsidized cost of health insurance. As an example of potential costs, for 2026, non-Medicare ASRS retirees who choose to get their insurance through us are paying a monthly premium of $660- $1,397 for single coverage. The monthly premium jumps to $1,320 - $2,974, depending upon the plan option, to cover themselves plus one other person.

In contrast, let's look at the 2026 monthly premiums for Medicare-eligible ASRS retirees. It ranges from $131.83 - $234.30 a month for single coverage living in-state. For "single +1" coverage, it ranges from $263.66 - $468.60. It is important to remember, however, that these costs will fluctuate. For example, in 2017, Medicare-eligible ASRS retirees paid $174-$332 a month for coverage through the ASRS. While currently we're able to offer a lower-cost option for that same group, many factors determine these costs and it's impossible to know what premiums may be in future years.

What does all of this mean for you? If you're within five years of retiring, start doing some research. Think about how old you'll be when you want to retire and how that might impact your health insurance options. Log into your secure myASRS account at AzASRS.gov and look at your pension estimates to get an idea of what your pension benefit may be. Perhaps check out our current Health Insurance Enrollment Guide to look at our current health insurance options and their monthly premiums. After that, ask yourself some questions: Where do you anticipate getting your insurance from when you retire? What are their current rates? How do those numbers impact your projected budget? Simply sitting down and doing the math will go a long way in getting you prepared!

Related Information

As part of your ASRS benefits, you may be eligible for a Health Insurance Premium Benefit when you retire, in which the ASRS pays a portion of your monthly premiums to your health insurer. For more information on benefit amounts, and to see if you will be eligible when you retire, visit our Premium Benefit page of AzASRS.gov.
If you're about to retire and comparing health insurance plans, don't forget about your total out-of-pocket health care costs, rather than just the monthly premium. Other costs, including deductibles, copayments, and coinsurance, may have a significant impact on your total spending on health care – sometimes more than the premium itself.

Returning to Work After Retirement: What ASRS Retirees Need to Know

Thu, 12 Jun 2025 21:48:29 +0000

Returning to Work After Retirement: What ASRS Retirees Need to Know

[email protected] Thu, 06/12/2025 - 14:48

Returning to Work After Retirement: What ASRS Retirees Need to Know

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Nearing Retirement Members

If you are starting to think about retiring and drawing a pension from the Arizona State Retirement System (ASRS), you may find yourself wondering about your options if you’d like to later return to work. The choice is yours – you can certainly keep collecting a monthly pension from the ASRS and go back to work, but it’s important to make sure you proceed in a manner that doesn’t negatively affect your pension.

Choosing Where to Work

The easiest way to go back to work and not affect your future pension benefit is to work for someone who isn’t an ASRS employer. We have zero rules, regulations, or statutes regarding working as much or as little as you wish for a non-ASRS employer while collecting your ASRS pension; coffee shop, hospital, in Arizona or abroad – the choice is yours. Some retirees work through external staffing agencies, independent contractor arrangements, or Professional Employer Organizations (PEOs) to perform duties for an ASRS employer (e.g., school districts, universities). This type of employment does not require a Return to Work form to be completed.

If you do decide to return to work directly for an ASRS employer, it’s still possible to collect your pension and work at the same time, but there are rules you must follow so that your pension is not suspended or adversely affected. This article will help explain the process of returning to work for an ASRS employer so that you can return to work with confidence. (Note, it is also possible to return to Work, suspend your pension, and begin contributing again. Members often choose this option if they want to positively impact their Graded Multiplier based on years of service, or Average Monthly Compensation (AMC) with the intent of increasing the pension they were receiving.)

Return to Work Form

The most important thing to remember is that all retirees returning to an ASRS employer must fill out a Return to Work Form. This form allows you to indicate to the ASRS how many hours a week and weeks in the year you intend to work. Why is this important? This information is vital to the ASRS because we must ensure that all retirees are adhering to the 20/20 criteria, explained below.

20/20 Criteria

The 20/20 rule is a key guideline to keep in mind when returning to work as a retiree. There are many ways that this rule can affect a member depending on their chosen Return to Work path. In general, if an ASRS retiree returns to work for an ASRS employer and works (or agrees to work) 20 or more hours a week for 20 or more weeks in a fiscal year (referred to as 20/20 criteria), their monthly pensions will be suspended and active membership resumed.

This rule applies differently depending on your situation. For example, whether you retired early or after reaching normal retirement age, and how long you’ve been retired, can impact how the 20/20 criteria affects you. The best way to determine how you and your pension may be affected is to use the Return to Work tool in the Working After Retirement section of your MyASRS secure account. To read more about the specifics of the 20/20 rule criteria, please visit the Return to Work page of our website.

Move Forward with Confidence

Returning to Work after retirement can be a great way to stay active, contribute, and boost your income, but it is important to do so with a clear understanding of the ASRS Return to Work statutes. By taking a few simple steps, like submitting the Return to Work form and staying informed on the 20/20 criteria, you can avoid unexpected interruptions to your pension while making the most of your pension. Whether you’re returning full-time, part-time, or just checking it out, the ASRS is here to support you every step of the way. Be sure to log into your MyASRS account and use the tools provided to help plan your return to the workforce with confidence.

You Submitted Your Retirement Application. Now What?

Tue, 11 Mar 2025 10:00:00 +0000

You Submitted Your Retirement Application. Now What?

[email protected] Tue, 03/11/2025 - 03:00

You Submitted Your Retirement Application. Now What?

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Nearing Retirement Members

What happens after you hit “submit” on your retirement application? We input the application information into our system, validate the application for compliance, and place your application in a hold queue (if we require additional information before calculating your benefit) or a processing queue (if no further information is needed to proceed). It’s important to remember that while the ASRS may receive your retirement application in advance of your retirement date, we will not be able to begin any retirement calculations until your retirement date has occurred. Regardless of when your retirement processing will begin, in approximately 5 business days, your submitted application and all your application elections will be visible in your secure myASRS account under pending requests. We recommend that you review the information carefully to verify your elections.

Note: In your myASRS secure account, you can click on the pending requests link to view any documents we need to complete your application to retire and where your application is in the process. We will also send email notifications to you at different steps in the process to provide you with updates.

Any ASRS employer you have worked for over the past 3 years will automatically receive an Ending Payroll Verification form where they will be asked to verify your termination date and various information about your compensation before retirement. In addition, your retirement benefit can only be calculated once we have received retirement contributions up to your stated retirement date (usually 2 to 3 weeks after your retirement date).

The most common things to hold up the processing of your retirement benefit are:

1. Documents that are needed to finalize your benefit are still pending

Note: The pending receipt of a Spousal Consent form is the #1 reason for the delay experienced by members. To avoid this, please ensure that if you’re married, you’ve discussed your preferred retirement option election with your spouse and jointly agreed on the option to be selected.

2. Service purchase payments that are pending, but have not yet been received (particularly if you are using a rollover from another financial institution)

3. Changes made to the retirement application resulting in a need for additional review, documentation, etc.

4. Contributions are received from your employer for a period after your retirement date

When will I receive my first payment?

Within 10 days of your retirement date, and perhaps for a few months thereafter, you will likely receive an estimated benefit payment. The estimate check is designed to lessen the impact of any payment disruption caused during the transition from work to retirement.

Note: The estimate check is designed to pay you quickly and not be a precise retirement calculation. Your estimate check could be as much as 20% lower than your finalized monthly pension benefit. Once your retirement has been finalized, any money you were either underpaid or overpaid while your retirement benefit was being processed, your ‘new retiree’ check will see the adjustment.If your retirement date is between the 1st and 20th of the month, your estimate check will be prorated to cover the number of days you were retired for that month. If your retirement date is later than the 21st your estimate check will be for the remainder of the current month as well as the following month. You may receive as many as 3 estimate checks during the processing of your retirement.

If your retirement date is between the 1st and 20th of the month, your estimate check will be prorated to cover the number of days you were retired for that month. If your retirement date is later than the 21st, your estimate check will be for the remainder of the current month as well as the following month. You may receive as many as 3 estimate checks during the processing of your retirement.

What if I want to change my elections? During the application process, you can log in to your secure myASRS account to review your retirement details, such as your retirement date, annuity option chosen, beneficiary, and other retirement elections.

If you determine that changes are needed, you have 30 days from your retirement date to make updates. To make a change, you can send the ASRS a secure message within the myASRS website or submit another retirement application. After 30 days, you can no longer change your retirement date, annuity option, or partial lump sum elections.

How long does it take to finalize my benefit? Generally, it takes about 45 to 90 days for your documents to be received and reviewed, your final contributions to be posted, and your benefit to be calculated and finalized.

Once your application has been finalized, you will receive the new retiree check, which will take into consideration your final benefit calculation, calculate any health insurance premiums you may owe, as well as any money that you were underpaid or overpaid while your retirement benefit was being processed.

Afterward, you will receive your finalized lifetime retirement benefit at the beginning of every month.

Identifying Your Retirement Date

Tue, 11 Feb 2025 20:35:18 +0000

Identifying Your Retirement Date

[email protected] Tue, 02/11/2025 - 13:35

Identifying Your Retirement Date

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Mid-Career Members

Nearing Retirement Members

As you contribute to your ASRS retirement account, you may find yourself wondering, “When can I Retire?” There are actually a number of different combinations of criteria that can be used to determine when you’re eligible for “normal” ASRS retirement. Due to changes in law over time, a primary factor is your ASRS membership date.

Members who began contributing to the ASRS prior to June 30, 2011

If you began contributing before June 30, 2011, you are able to utilize the 80 points system.

- Members Age + Years of service = 80
- At age 62 with 10 years of service
- At age 65 with any number of years of service

Members who began contributing to the ASRS on July 1, 2011, or later

If you began contributing to the ASRS on July 1, 2011, or later, then your eligibility is slightly different. These members can use one of four different combinations of criteria for normal retirement:

- At age 55 with at least 30 years of service
- At age 60 with 25 years of service
- At age 62 with 10 years of service
- At age 65 with any number of years of service

Additionally, all members with at least 5 years of service are eligible for “early” retirement at age 50. Because retirement benefits are based on “normal” retirement rules, a member who takes an early retirement will receive a permanently reduced benefit for their lifetime. For more details on retirement eligibility, you can review our Retirement Eligibility page.

Retiring Before 65?

Wed, 05 Oct 2022 00:35:54 +0000

Retiring Before 65?

[email protected]">nathanielb@aza… Tue, 10/04/2022 - 17:35

Retiring Before 65?

For

Nearing Retirement Members

If you’re early in your career, you may think “retiree health insurance” isn’t a topic you should be terribly concerned about at the moment, but you might be surprised! If you plan on retiring before 65, when most are eligible for Medicare, then health insurance costs could be something you want to start thinking about now.

Simply put, medical insurance is much more expensive for retirees who are not yet eligible for Medicare than for those who are. For 2023, for example, coverage for a non-Medicare retiree through an ASRS plan will be $711 to $1258 a month more expensive than coverage for a Medicare-eligible retiree.

If the premiums for non-Medicare plans seem high, you may be surprised to learn that this is probably in the neighborhood your total health insurance costs today. The primary difference is that when you are working, your employer typically picks up a large share of the total cost of healthcare as an employee benefit. When you retire, this is no longer the case until you become eligible for Medicare, when your healthcare will again be subsidized - this time by the federal government.

What should you do with this information right now?

Think about what age you’ll be when you’d like to retire. If it’s before you’re 65, consider how you’ll pay for insurance.

- Open A Savings Account. You may decide you want to start saving now to make it easier to pay for insurance when you’re older. Visit our Supplemental Savings page to see what plans we offer, or talk to your employer to see what plans they may offer as well.
- Plan on a 2nd career. If you plan on working after you retire from the ASRS, you may be able to get affordable insurance through your future employer.
- Coverage through a spouse. You may be able to get more affordable future coverage by joining a plan through a spouse.

Whatever the plan, the important part is not being surprised. The average ASRS retiree is near the age of 60, meaning this is a situation retirees are figuring out how to navigate all the time.

If you’re in the later stages of your career, we always have health insurance rates for retirees available on our website, so you can keep tabs on what rates look like as you get closer to retirement – just visit the Healthcare page of the Retiree section.

For those who may be on the verge of retirement now but are worried because you’ll be retiring after our November open enrollment period ends: You’ll have the opportunity to enroll in an ASRS health insurance plan upon retirement. Retiring is considered a “qualifying life event,” meaning you will have the opportunity to sign up for insurance even if your retirement happens outside our annual open enrollment period.