Regardless of your age, it is never too early to begin thinking about your retirement plans.
Like many, you likely have plans and dreams for your retirement life, so why not make sure those dreams become a reality. Although you are never too young to begin assessing your retirement plans, you will be at a different stage in the process, depending on your age.
Advisors here at National Educational Services work to make sure this complex process of planning for retirement is as simple as possible. Check out the age-by-age retirement planning guide below.
Teachers in Their 20’s
While teachers at this age are still very early on in their careers, like we have stated many times before, it is never too early to start investing and saving for the future. Retirement will hit you sooner than you think, and it will be so much easier if you are financially prepared. Listed below are 3 tips and tricks to help you get started in the retirement savings process.
Understand Your Retirement Benefits
Every teacher retirement system is different and oftentimes school districts do not provide sufficient information about these very important plans. Do your own research and learn all the information about your retirement plan and benefits.
403(b) vs 457(b) and Determining Which is Right for You
The two types of retirement plan for educators at public schools are the 403(b) plan and the 457(b) plan. While these two may seem very similar, they are also very different. Read about each plan and talk with your NES advisor to determine which is best for you.
Create a Savings and Spending Plan
It is a good idea to start investing for your future at a very young age. Working with your advisor to determine what savings plan is right for you is a great option.
Teachers in Their 30’s
By 30 years old, you are most likely settled well into your teaching career. At this point, your financial obligations may start becoming steeper, but you should not shy away from investing in your future. Check out the tips below for educators in their 30s.
Don’t Stop Just Yet
Stay committed. Keep investing in your retirement plans as it will pay off in the future. It may seem like retirement is many years away, but it comes faster than you think, and you need to be prepared.
Pay Off Student Loans
Paying off these high interest loans can be very beneficial when it comes to saving and planning for the future.
Develop a Rainy-Day Fund
At this point, the roots of your investments should be solid and now you need to work to protect these solid roots. Creating a rainy-day fund or investing in a living benefits plan.
Teachers in Their 40’s
By 40 years old, you have been in your teaching career for a decent amount of time. Additionally, you most likely have a family and other financial obligations at this point in time. Below are some great tips for your current financial situation.
Don’t Give Up!
While it may be tempting to take a break from investing in your retirement plan, do not give up! Stay on track and continue to plan because it will pay off.
Assess Financial Risks
Your financial riskiness changes all the time and by this point, you are definitely not as financially risky as you were when you were younger. Talk with your advisor and reassess your risks.
Teachers in Their 50’s
Almost there, but just not quite ready for retirement. At 50 years old, you are well into your career as an educator, and it is the final stretch! Check out the savings tip specifically for your age group below.
Assess Your Current Situation
Since at this point you are nearing retirement, you should be meeting with your advisor regularly to ensure you are on track for retirement.
Be a Conscious Spender
Make smart decisions with your money. Pay off any debt you have if you are able to rather than splurging on another purchase.
Teachers in Their 60’s
You made it! At some point during your 60s, you will finally be officially retiring from your career as an educator. Check out these final tips below for you right before you make the official retirement decision.
Do One Final Check
Before making anything official, you should assess your financial status one more time with your advisor. This is a great idea just to ensure that nothing has changed and you are set up to be financially stable during retirement.
You should also start considering things such as your will and possible medical directives. This will ensure that all of your prized assets will be protected for many years.
What Are You Waiting For? Speak with us today!
You are never too young (or too old) to begin saving for retirement. Reach out to any advisor at National Educational Services today to start planning your future.