Short answer: each extra year adds 1.6% of your final average earnings to the formula and, before 65, shrinks the age reduction. Reaching 57 with 30 years removes it, which is why the table below jumps. The 70% cap limits very long careers. Load the 60-year-old example in the calculator, or compare payment options.
A teacher at 60 with 25 years
$5,000 a month in final average earnings, all service from 2000 on, the same pay each year:
| Retire at | Years | Factor | Monthly |
|---|---|---|---|
| 60 | 25 | .960 | $1,920 |
| 61 | 26 | .974 | $2,026 +$106 |
| 62 | 27 | .986 | $2,130 +$104 |
| 63 | 28 | .994 | $2,227 +$97 |
| 64 | 29 | .998 | $2,315 +$89 |
| 65 | 30 | 1.000 | $2,400 +$85 |
Factors from ETF's table. Each year adds 1.6% × $5,000 = $80 for the extra service, plus the smaller reduction. ET-4107 (rev 3/5/2025), p. 10, Age Reduction Factors; ET-4107 (rev 3/5/2025), p. 7, Formula Multipliers
The jump at 57 with 30 years
A teacher at 55 with 28 years, same pay:
| Retire at | Years | Factor | Monthly |
|---|---|---|---|
| 55 | 28 | .878 | $1,967 |
| 56 | 29 | .939 | $2,178 +$212 |
| 57 | 30 | 1.000 | $2,400 +$222 |
| 58 | 31 | 1.000 | $2,480 +$80 |
Reaching 57 with 30 years at 57 removes the reduction: +$222 a month for that one year. Even with 30 years, starting at 55 or 56 is still reduced 0.4% a month before 57. ET-2119 (6/18/2026), p. 3, If You Are Vested and Have Reached Minimum Retirement Age
Where it stops
The formula can't pay more than 70% of your final average earnings. At 1.6% a year that's about 43 years of post-1999 service (fewer if you have years before 2000 at 1.765%). After that, only a raise or the money purchase method can add more. ET-4107 (rev 3/5/2025), p. 8, Maximum Monthly Benefit
Timing in the year
Fiscal year (July 1 to June 30) for teachers, educational support personnel and judges; calendar year for others. ET-4133 (rev 6/12/2026), p. 12, Frequently Asked Questions: Is there a better time of year to retire?
What the sources say
- Last years are usually the highest, so finishing another full fiscal year before retiring may raise your formula benefit.ET-4133 (rev 6/12/2026), p. 12, Is there a better time of year to retire?
- Working longer adds service and shrinks the age reduction. With 25 years, the factor goes from .960 at 60 to .974 at 61 (26 years) and .986 at 62 (27 years).ET-4107 (rev 3/5/2025), p. 10, Age Reduction Factors
- For a money purchase benefit, think about timing: leaving mid-year gets the prorated 5% interest, while staying the whole calendar year gets that year's full effective rate (announced around March).ET-4133 (rev 6/12/2026), p. 12, Is there a better time of year to retire?
Questions
What does one more year add?
Another year of service (1.6% of your final average earnings a year) and a smaller age reduction if you're under 65. Often a higher final average too, since your last years usually pay the most.
Is there a big jump anywhere?
Yes, at 57 with 30 years: the age reduction disappears. A teacher who reaches 30 years at 57 gets the full formula.
When does working longer stop adding?
When the formula hits the 70% cap. After that more service doesn't raise the formula amount, though a raise in pay still can.
Is there a better time of year to retire?
Teachers' earnings years run July to June, so finishing the school year counts a full year. For money purchase, see what ETF says about interest in the year you retire.
Source: Your Benefit Handbook (ET-2119), 6/18/2026, with Calculating Your Retirement Benefits (ET-4107, rev 3/5/2025), ET-2119 p. 3; ET-4107 pp. 7, 8, 10; ET-4133 p. 12. Last reviewed .