As a teacher, you probably have a mix of retirement income sources. Most likely, you will have a personal pension plan through your employer. Additionally, you most likely have access to other defined-contribution plans like the 403(b) and the 457(b).
Although, as a teacher, you may find out that you are not eligible for Social Security benefits, as many teachers do not pay into the system. This can make the retirement process for teachers not as easy as possible. Here at National Educational Services, we work to make this process as pain-free as it can be. Let’s look at some of the strategies we have crafted to make this simple.
Navigating retirement as a teacher
Navigating retirement can be very tricky, especially for educators who may be unfamiliar with many of the financial aspects that come with retirement.
Asking for help from experts is always a great way to make sure you understand your retirement plans, as retirement is different for everyone. There are many great websites to access for quick and easy help when it comes to learning more about your retirement game plan.
When searching the internet for help with retirement questions, it will be most helpful to find sites and sources that are state-specific. First, read this article titled “Do all teachers get pensions?”, and “5 Tips Teachers Saving for Retirement Should Know”.
Next, each teachers association is different, so search for facts based on the state you are employed in. Two sources worth checking out are listed below:
Teachers Retirement System (in your state)
Your State teachers’ association site
These sites can be very helpful, as they tend to be able to answer questions specific to your specific association and state of residence. These sites provide counselors, usually free of charge, to assist you with questions about your benefits and retirement plans.
Get Retirement Advice From Experts at National Educational Services
In addition to the free help that can be provided through various websites, you may also consider hiring a financial advisor. A financial advisor can provide you more personalized advice and plans for your retirement. Beyond your basic financial advisor, you can also find specialized financial advisors. These advisors, such as the ones at our company, National Educational Services, work specifically for educators like you and understand the nuts-and-bolts teacher’s retirement plans.
Most importantly, when looking to hire any sort of financial advisor, you should make sure they are a fiduciary. A fiduciary works in the best interest of you and your wants and needs, rather than working to sell you a specific product or plan.
Read our article titled “Why All Educators Need a Retirement and Tax Advisor”.
Save Beyond Your Pension
The majority of educators make contributions to a defined-benefit pension. This means that while they are individually making contributions, so is their employer. In return, your state promises to make payouts for the rest of your life during retirement.
These payments are based on several factors such as length of service, history of earnings, and other things. But most of the time, these payments do not meet the financial need of teachers in retirement. It is essential for teachers to consider other retirement plan options early on in their careers. This allows for more financial security and income during your retirement years.
Some supplement investment plans are listed below.
Ensure You Have Enough Insurance
If you retire early, it is important to understand that you are not eligible for Medicare until you are at least 65 years old. Often, retirees will work part-time to receive cost-effective health insurance and additional coverages. Read our article titled, “Medicare Won’t Cover Your Long-Term Care. Here’s why.”
Before officially retiring, it is necessary to ensure you either qualify for Medicare, have a part-time job with medical benefits lined up, or have another way to make sure you are getting the insurance and coverage you need.
Contact an Expert Retirement Advisor at National Educational Services
As mentioned earlier, navigating life to and through retirement can be tricky, even for educators. Finding an expert to help make the process easier is essential. Contact us here at National Educational Services today to find an advisor that works specifically for you as an educator to ensure your retirement is as smooth as possible.