Revamping Your Retirement Plans

Thinking about retirement is crucial for teachers planning to leave the field. You may have been teaching in a district that offered a good retirement plan; if you've put money into a pension or 403(b) or similar, it’s vital to find out what will happen to that money. One of the items on my checklist was a pension consultation, which was done through my union. There are so many factors and variables that it’s important to find out how your district works, especially if you have been teaching for several years. If you move on to another public sector job, you may be able to roll your

Thinking about retirement is crucial for teachers planning to leave the field. However, there are so many different districts and municipalities it’s hard to address specific steps you should take. If you've been teaching for only a couple of years you may not be vested yet; if you've been teaching for 25 years you may be able to move on to a new career and get your full pension from teaching. Everyone will have a different situation. I fell short of the magic number, which was 20, so I will get a significantly smaller pension than I would have gotten if I’d stayed four more years. But my willingness to not invest those years provided me with a strong sign that I was doing the right thing for myself. Four more years would have been a large chunk of my child’s life that I was unwilling to miss. Saving for the future is important, but enjoying your work and life in the present matters too.

Learning about options for retirement savings has been one of the things I’ve put on the back burner, but need to focus on. Your new employer may offer a 401(k) or another kind of account, but you may find that you want to create an additional account on your own as a supplement. Here are some articles I’ve found helpful.

·         I’ve heard of 401(k) accounts, but didn’t know much about specifics. This Wall Street Journal article has a brief but detailed explanation.

·         There are multiple types of Individual Retirement Accounts, also called IRAs. Unlike 401(k) accounts, they are set up by individuals for themselves. If you are planning to leave teaching to pursue a freelance career or other self-employment, it would be worth the time to learn more about IRAs.  This guide from CNN provides basic information while linking to additional information about the different types of IRAs and who is eligible for them.

I’m not a financial professional, and I think there are plenty of great free and almost-free resources out there to help you make the leap from teaching to a new career. But I would recommend making an investment in a financial planner. Your bank may offer a service. This article can also help you.