Population: New or Prospective Non-Represented
Retire Financially Strong
If you do not work at all after retiring from PSEG, your income in retirement will come from four primary sources. It is your responsibility to make sure your income is enough to sustain the life you plan to lead as a retiree.
Social Security
Social Security is designed to replace part of your income after retirement. However, it’s best not to rely on Social Security as your sole source of retirement income. In fact, the future of Social Security is uncertain at this time. It's best to plan without assuming a Social Security benefit will be paid.
If you make a lot of money, don’t expect a big payoff from Social Security when you retire. You see, your Social Security benefit is based on a percentage of income replaced and is inversely proportional to your annual pay. The higher your salary, the less the percentage of your pay that is replaced by Social Security.
For a more precise estimate of your Social Security benefit and for other facts about Social Security, visit the Social Security Adminstration Site.
Pension
Cash Balance Pension Plan
Unlike traditional pension plans, the Cash Balance Pension Plan is portable! That means you can take it with you even if you leave PSEG before retirement. And that's not all.
- You begin participation in the plan right away. Plus, you can see how much you've accumulated toward retirement, since your Cash Balance benefit is expressed as an account balance. And, you have the opportunity to transfer a portion of the Company's contribution to this plan into your Thrift or Savings Plan.
Visit the Benefit Details section for more information on the Cash Balance Pension Plan.
Thrift or Savings Plan
PSEG gives employees access to a 401(k) plan to save for retirement, represented employees have access to the Savings Plan and non-represented employees can participate in the Thrift Plan, and the Company will match a portion of your contribution. Contributing in these plans is key to retirement planning.
For more information, see the appropriate section under Benefit Details.
Personal Savings
What kind of lifestyle do you want to lead in retirement? Do you want to travel, pursue a hobby, or start a new career? Retirement is a time full of possibilities—if you’ve planned for it by building your personal savings. Experts say you need to replace at least 100% of your pre-retirement income, but Social Security, your pension, and any benefit you receive from the Thrift or Savings Plan may only replace part of it. Although this figure used to be lower, rising life expectancies and health care costs have made 100% a safer number. It’s up to you to make up the difference. Leverage all of your resources to help you reach your retirement goals.
Use the Retirement Savings Calculator to compute how much you would need to have invested in order to withdraw a specified amount each year over the course of a specified period of time.