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Planning for Teacher Retirement

Educator Retirement Center

Teachers normally become absorbed into educational systems and have long and prosperous careers in the classroom. Yet, like everyone else, teachers do have to plan for retirement. This takes thought as well as advice from financial professionals and prior planning. The following article addresses the subject of successful planning for teacher retirement.

Rule Number One: Know Your Life Expectancy

It is not a subject that most people care to think about, but mortality is a fact and for purposes of retirement planning, it is an important one. There are life expectancy tables available online, so learn the average life expectancy and begin to think about how much money you will need for retirement based upon those numbers conservatively.

Rule Number Two: Research Your State's Retirement Website

Each individual state is different, and as such, you will need to fully acquaint yourself with the rules and resources that you are entitled to access. Do not listen to those from another state system. Do the research for yourself about what is available to you from your state's retirement system website. There is no substitute for the time that you put in there, learning and absorbing the information that is put there for your benefit.

Rule Number Three: Consider Lifestyle

It is important to remember that not all people have the same lifestyle. In other words, some people like to live with more of what could be considered luxuries, and others prefer a quieter, more basic lifestyle. Therefore, during retirement planning, lifestyle must be taken into account. What kind of lifestyle do you want to have after retirement? Will there be traveling involved, or will it be more of a closer to home type of retirement? These are the types of questions that must be considered and planned for, not left to hoping, wishing and chance. A solid plan that is made in conjunction with a professional is what is necessary.

Rule Number Four:

Take Advantage of Automatic Deductions Many teachers have become wealthy over the courses of their career by merely taking advantage of the teacher option to have automatic deductions into the retirement account. It is better if everything is set up as an automatic deduction, because then it will be sure to happen and not be reliant upon the writing of a check. If teachers never see the money, then they will never be tempted to spend it instead of putting it into the retirement account. Automatic deductions are the wisest way to go for setting up retirement accounts for teachers.

Some Possibilities for Retirement Plans:

Roth IRAs

403(b) annuities

Social Security eligibility

When it comes to retirement, there are many factors that go into a good retirement plan. Naturally, it is important to know such basic information as life expectancy, your state's retirement website and some possibilities for retirement plans. Retirement planning requires careful consideration and consultations with a trained advisor, in order to produce a workable plan. Fortunately, a teacher's career is plenty of time to produce enough income to provide a good retirement income. All it takes to have a good retirement is dedication, research, and persistence toward a diligent plan.

More Information On Teacher Retirement

  1. 403bwise.com: The 403b/TSA Information Center
  2. International Society for Retirement Planning (ISRP)
  3. National Council on Teacher Retirement
  4. National Retired Teachers Association- The official site.
  5. Retirement of a teacher speeches- At the end of the year we are all out of ideas. This site can come in handy.
  6. Retirement Educators- If you choose not to do it yourself or have little to no help, you might want to give this service a look.
  7. The 403(b) Teacher's Guide- Do it yourself.
  8. What Will You Do When You Retire?- A great discussion to ponder.

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