CalPERS Retirement Study Finds "Highly Satisfied" Retirees in Majority

The California Public Retirement System (CalPERS) released the 2010 CalPERS Retirement Survey responses and analysis this week. The sampling of 7,094 respondents showed most CalPERS members who have retired since January of 2007, report an improved quality of life and are happy they retired. The top reason for retiring was, "the right time of life to retire and good financial preparation."

While the average state retirement checks only average about $25,000 annually, most CalPERS members reported secure retirements because of a mix of incomes from supplemental sources.

Members continue to retire in their late fifties because employer retirement plans mature at this stage in their lives. The demographics of retirement are basically the same, but more retirees are now single, divorced or living with a partner.  Another significant positive change was the proportion of employees retiring because of disabilities has dropped by more than half since 2002. The average length of service is 24 years for the retirees.

The survey did not find furloughs were a primary consideration when employees decided to retire. "While California's current economic difficulties including layoffs, furloughs and lower home values were the least cited reasons for retirement timing, 15.2 percent of respondents did cite pay, finances, money, benefits, the State budget, furloughs or being forced out as the single most important factor in retiring when they did," according to the survey.

The majority of respondents are "highly satisfied with the decisions to retire and being financially prepared for retirement," according to the survey.  Although one in eight retirees reported a lower quality of life in retirement, "The typical retiree is very comfortable financially in retirement with other income providing somewhat more than the CalPERS retirement pension on the average. Two thirds of those eligible to do so are drawing Social Security."

The 34-question survey was released to more than 75,000 CalPERS retirees in June through the CalPERS web site. It was designed and analyzed by The Michael Strategic Analysis, based in Maryland.