The Best Strategies for
teachers to retire.
A recent Gallup poll found that the average retirement age in the US is 62. We all want to retire early and teachers are no exception. The best part about being a teacher are the options that bring retirement into view early.
How does retirement work for educators?
Teachers and other education-related workers are often eligible to participate in a retirement planning program called the Teacher Retirement System (TRS). The TRS is an organization that helps provide retirement benefits for teachers.
Where can you find TRS benefits?
You can find them at state and local systems but they are different from state to state. Most TRS plans are verified retirement plans connected to the Employee Retirement Income Security Act (ERISA). The TRS typically offers a defined benefit pension plan, guaranteeing you a monthly benefit based variables related to your plan features. Check with your CERTIFIED FINANCIAL PLANNER™ professional for full benefits.
You might also be eligible for more retirement benefits under their specific plan. In addition to the TRS pension plan, most teachers can use a tax-deferred annuities. These plans allow you to defer your salary and contribute more, which offers you additional options to save. Keep in mind, the current and additional options carry some important points to consider.
The Opportunity – Supplementing Your Pension With a 403(b), 457 or 401(k)
Supplementing your TRS pension with tax-advantaged savings plans is a great way for you to get to your retirement goals faster.
The trick is to start as early as possible. This will allow you to earn compound interest right away and keep the contributions going until you decide it’s time to stop teaching. You can begin today by learning about your options. Many of which use the newest technology in conjunction with a trusted advisor.