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Retirement Plans for Teachers

Retirement Plans for Teachers

May 21, 2024

There are different types of retirement plans for teachers, here are some that may be available to you and how they work:

 

Defined-Benefit Pension Plans:

-Most teachers are eligible for a defined-benefit pension plan. These provide a guaranteed income when you retire based on the number of years you worked and your salary.

-Check with your employer’s plan to get the specifics of yours.

 

Defined Contribution Plans:

-Teachers usually also have access to defined contribution retirement plans, such as 403(b) or 457(b) accounts. These are like 401(k) plans for nonprofit organizations.

-Contributions to these plans are made on a pre-tax basis, and some employers may match a portion of your contributions.

-It’s important to contribute to these as well to supplement your pension plan.

 

Social Security?

Something teachers need to keep in mind about Social Security is that all teachers may not be eligible for Social Security retirement benefits. Some public school teachers do not pay into the Social Security system, making them ineligible to claim benefits upon retirement. It’s important to be aware if you are paying into Social Security to know if you will receive the benefit.

 

You may also be able to set up an IRA (Individual Retirement Account) or Roth IRA to save more for retirement in addition to your employer’s plans and Social Security.

 

Regardless of your age, it's important to start looking at your retirement plans today to make sure you’re choosing the best options for you. If you’re nearing retirement, it’s a good idea to speak to a financial advisor who can help you make the most of what you’ve saved.

 

Whatever your situation is, if you have any questions or would like someone to go over your accounts send me an email or give me a call. We can talk and see if I’m a good fit to help you.