Saving for Retirement with IMRF

A recent study by the National Institute on Retirement Security found that the median American only has $955 saved for their retirement.

That is a scary number, but as an IMRF member, it is important to remember that you are saving for your retirement with every paycheck.

Where is Your Contribution?

Your savings for your retirement, commonly referred to as your IMRF contribution, is sent directly to IMRF from your employer when you get paid - similar to the way taxes are paid.

Regardless of your pension tier, 4.5% of your total earnings is sent to IMRF. After leaving IMRF employment or retiring, you are a guaranteed the return of your contributions through your pension, a refund, or death benefits.

IMRF Pensions are Nearly 100% Funded

Additionally, your employer makes contributions every month, as required by law. The rate they pay varies based on a variety of factors, including the number of employees and retirees.

Contributions from IMRF members and employers get invested to provide the rest of the funding for the guaranteed benefits in your pension. The pension dollar below shows how much of IMRF pensions are paid from member and employer contributions and investments.

Based on unaudited results from 2025, IMRF is 96.9% funded, which means that it has 97 cents of every dollar owed to current and future retirees. Learn more about IMRF's financial results here.

Additional Ways to Save

With your IMRF pension you are ahead of most Americans when it comes to retirement savings, however, if you are interested in saving more for your retirement you can take part in IMRF's Voluntary Additional Contributions (VAC) program.

This program allows members to invest up to 10% of their income after tax into a separate individual account. Your contributions earn a guaranteed rate of return of 7.25% every year after the first year, which is significantly higher than most traditional retirement savings accounts.

Investing a small amount early can significantly increase your monthly retirement income.

Learn how to sign up for the VAC program here.