Bottom line
The age factor is the percentage of your final salary you earn per year of service. Under CalSTRS 2% at 60 it runs from 1.1% (age 50) to 2.4% (age 63). Under 2% at 62 it runs from 1.16% (age 55) to 2.4% (age 65). Thirty-plus years adds a 0.2% career factor under 2% at 60 only.Quick facts
- Age factor = percent of final salary earned for each year worked
- 2% at 60: 1.1% at age 50, 2.0% at 60, 2.4% at 63
- 2% at 62: 1.16% at age 55, 2.0% at 62, 2.4% at 65
Where the age factor sits in the formula
A CalSTRS pension is three numbers multiplied together: your years of service credit, your age factor, and your final compensation (your highest average salary). The age factor is the only one of the three that rewards you for waiting.
It answers a simple question: for each year you taught, what slice of your final salary do you get back every year in retirement? At an age factor of 2.0%, thirty years of service returns 60% of your final salary for life. At 2.4%, the same thirty years returns 72%.
CalSTRS 2% at 60 — for members hired before January 1, 2013
Under this structure the age factor is exactly 2.0% at age 60 — that is what "2% at 60" means. Retire earlier and the factor drops on a sliding scale to a floor of 1.100% at age 50 (age 50 is only available with 30 years of service; otherwise the earliest retirement age is 55). Retire later and it climbs to a ceiling of 2.400% at age 63.
There is a bonus called the career factor. If you retire with 30 or more years of service credit, CalSTRS adds 0.2% to your age factor, still capped at 2.4%. A teacher retiring at 61.5 with a 2.2% age factor would move to 2.4% with the career factor. Members with 30+ years may also elect a one-year final compensation instead of three years.
| Age at retirement | Age factor | With career factor (30+ years) |
|---|---|---|
| 50 | 1.100% | 1.300% |
| 55 | 1.400% | 1.600% |
| 58 | 1.760% | 1.960% |
| 60 | 2.000% | 2.200% |
| 61.5 | 2.200% | 2.400% (capped) |
| 63 and older | 2.400% | 2.400% (capped) |
CalSTRS 2% at 62 — for members hired on or after January 1, 2013
This structure was created by California's 2013 pension reform (PEPRA). The age factor is 2.0% at age 62. The earliest you can retire is 55, where the factor is 1.16%. It rises to the same 2.4% ceiling, but you must reach age 65 to get there.
Two things are missing compared with 2% at 60: there is no career factor, so 30 years does not add anything to your age factor, and final compensation is always a three-year average — the one-year option does not exist here.
| Age at retirement | Age factor |
|---|---|
| 55 | 1.160% |
| 58 | 1.520% |
| 60 | 1.760% |
| 62 | 2.000% |
| 64 | 2.280% |
| 65 and older | 2.400% |
Reading your own number
The age factor changes every month, not just every birthday, so retiring in June versus December of the same year gives you a slightly different factor. Your myCALSTRS Retirement Progress Report shows the exact factor for a given date.
When you compare retirement dates, change only the age factor and years of service and hold final compensation roughly steady — that isolates what another few months of work is actually worth. Near the 2.4% ceiling, waiting stops helping, and the decision shifts to how many years of pension payments you are giving up by delaying.
The one-year vs three-year final compensation choice
Under 2% at 60, members with 25 or more years of service credit can have their pension based on the single highest year of salary instead of a three-year average. This is a separate benefit from the age factor, and it can add a few percent to the final compensation figure.
Under 2% at 62 this option does not exist — final compensation is always a three-year average. When comparing the two structures, remember that a 2% at 60 member with a long career gets both the career factor and, often, the one-year final compensation.
Checklist before you decide
- Confirm whether you are in 2% at 60 or 2% at 62.
- Look up your exact age factor for your target retirement date.
- If you are 2% at 60 with 30+ years, add the 0.2% career factor.
- If you are 2% at 60 with 25+ years, compare one-year vs three-year final compensation.
- Check where waiting stops raising the factor (age 63 or 65).
Common questions
What is the CalSTRS age factor?
It is the percentage of your final compensation you earn for each year of service credit. It rises with your age at retirement — from 1.1% at 50 to 2.4% at 63 under 2% at 60, and from 1.16% at 55 to 2.4% at 65 under 2% at 62.
How does the CalSTRS career factor work?
If you retire under 2% at 60 with 30 or more years of service credit, CalSTRS adds 0.2% to your age factor, capped at 2.4%. There is no career factor under 2% at 62.
Does the age factor change monthly?
Yes. It increases in small monthly steps, so your retirement month affects the factor. Your myCALSTRS Retirement Progress Report shows the exact factor for any date.
Sources for this page
Sources were reviewed on September 9, 2026. Rules and member records maintained by the retirement system control.
CalSTRS — Age factorOfficial source ↗CalSTRS — Understanding the formula: 2% at 60Official source ↗CalSTRS — Understanding the formula: 2% at 62Official source ↗This article provides general educational information. It is not a benefit determination or financial, tax, or legal advice. Confirm account-specific information with the retirement system.