What is a pension gap?

Many educators plan to rely on their state-funded pension in retirement. But the truth is, there may be a significant difference between your pension and the income you’ll need to enjoy the retirement you deserve. Fortunately, a 403(b) can help you close that gap.

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Interested in becoming an Equitable client?

Enroll in an Equitable Financial or Equitable America 403(b) plan and find your local Equitable Advisors Financial Professional.

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Your state’s pension grade

The map below shows each state’s pension grade from A to F. The darker the state, the greater the pension gap.

map of the United States highlighting each state based on increasing pension gap its

Do you have a retirement plan through work?

Evaluate your retirement income potential using our retirement calculator. Make adjustments and add in other savings to see how changes affect your goals.

I am years old and earn a year.

I have saved for retirement and contribute every . Annual salary must be between $20,000 and $500,000. Savings must be between $0 and $9,999,999. Maximum yearly contribution is $23,000 for people aged 49 and under. For people who turn 50 by the end of the year a catch-up contribution allowance of $7,500 is permitted. Contribution cannot be more than annual salary ($).

This informational calculator is not created, owned, or maintained by Equitable Advisors or its affiliates, nor has it been determined in our own testing to be precisely accurate. Equitable Advisors and its affiliates make no representation as to the calculator's accuracy, completeness, or applicability with regard to any person's individual circumstances. The calculator provides only general estimates; its hypothetical results should not be relied upon as a basis for any financial, investment, or other decision or determination.

IMPORTANT NOTE:  Equitable believes that education is a key step toward addressing financial goals, and we've designed this tool as an informational and educational resource, intended to facilitate the review of your current financial situation, based on information and assumptions provided by you. This discussion and any hypothetical results or information provided herein do not offer or constitute investment advice and make no direct or indirect recommendation of any insurance, investment, financial product or investment option. Equitable and its affiliates do not provide tax or legal advice or services. Please consult with your tax and/or legal advisors regarding your particular circumstances. The needs, goals and circumstances of individuals are unique, and they require the individualized attention of a financial professional.

a social security card in a pile of dollar bills

Social Security may not be the answer

Some educators expect Social Security to help close their pension gaps. But in the 12 states below,* Social Security payments are reduced based on how much you earn from your pension.

  • California
  • Connecticut
  • Illinois
  • Iowa
  • Massachusetts
  • Michigan
  • New Jersey
  • New York
  • Ohio
  • Pennsylvania
  • Texas
  • Wisconsin

* Subject to change. Consult with your own legal and tax advisors accordingly.

female teacher pointing to a math problem on a white board and explaining it to three adult students
The #1 provider of 403(b) plans for K-12 schools1

Educators trust us to help them bridge their pension gaps because we have a proud history of supporting the community.

Learn more

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There's value in working with a financial professional2

Successful savers work with financial professionals to help them close their pension gaps by saving sooner and saving more.

How so?

Make sure a pension gap doesn't impact your future vision.

Explore more

1 LIMRA, Not-for-Profit Survey, Q1 2023 Results, based on 403(b) plan participants and contributions. This applies specifically and exclusively to Equitable Financial Life Insurance Company (Equitable Financial).

2 Equitable, “The value of the advisor: The impact of advisors on financial outcomes among K–12 educators,” 2022.

Products funding group retirement plans are issued by Equitable Financial Life Insurance Company, NY, NY. Equitable Financial and its affiliated companies do not offer tax or legal advice and are not affiliated with any school district, state agency or program. Equitable is the brand name of the retirement and protection subsidiaries of Equitable Holdings, Inc., including Equitable Financial Life Insurance Company (NY, NY); Equitable Financial Life Insurance Company of America, an AZ stock company and Equitable Distributors, LLC. The obligations of Equitable Financial and Equitable America are backed solely by their claims-paying abilities. GE-4827897.1(7/22)(Exp. 7/24)

Important note: Equitable believes that education is a key step toward addressing your financial goals, and we’ve designed this material to serve simply as an informational and educational resource. Accordingly, this page does not offer or constitute investment advice and makes no direct or indirect recommendation of any particular product or the appropriateness of any particular investment-related option. Your needs, goals and circumstances are unique, and they require the individualized attention of your financial professional.

Products funding group retirement plans are issued by Equitable Financial Life Insurance Company, NY, NY. Equitable Financial and its affiliated companies do not offer tax or legal advice and are not affiliated with any school district, state agency or program.

 

Equitable is the brand name of the retirement and protection subsidiaries of Equitable Holdings, Inc., including Equitable Financial Life Insurance Company (NY, NY); Equitable Financial Life Insurance Company of America, an AZ stock company and Equitable Distributors, LLC. The obligations of Equitable Financial and Equitable America are backed solely by their claims-paying abilities.

GE-5931451.1  (09/2023) (Exp. 09/2025)