Planning for Retirement. A Journey Every Educator Deserves

After years dedicated to shaping young minds and strengthening communities, retirement is the long-awaited chapter where life’s rewards should be felt, not feared. At Teachers Financial Services, we understand that educators often put others first — but your future deserves the same care and attention you've given to your students. Whether you're early in your career or just a few years away from retirement, now is the time to take control of your financial future.

In this article, we’ll walk you through the key pillars of retirement planning — from understanding your retirement income sources to preparing for healthcare costs, investments, and lifestyle changes. Let’s make your next chapter the most fulfilling one yet.

1. What Does Retirement Really Cost?

Many people underestimate how much they’ll need to retire comfortably. A good rule of thumb is that you'll need 70% to 90% of your pre-retirement income to maintain your current lifestyle once you stop working. For teachers, this includes factoring in:

• Pension benefits (if applicable)

• Personal savings and investments

• Social Security (if eligible)

• Healthcare expenses

• Lifestyle goals (travel, hobbies, supporting family)

Tip: Start by estimating your annual expenses during retirement and multiply that by the number of years you expect to be retired (often 20–30 years). Include rising healthcare costs and inflation.

2. Know Your Retirement Income Sources

Most teachers rely on a mix of income sources in retirement. Understanding each one will help you build a stable, diversified income stream:

a) Pension Plans

Many teachers are enrolled in state or local pension systems. These provide a steady, defined monthly benefit based on your years of service and final salary. However, it’s important to:

• Review your pension statement annually.

• Understand how your pension is affected if you leave the profession early.

• Know your payout options and survivor benefits.

b) Personal Savings (403(b), IRA, Roth IRA, etc.)

If you’ve contributed to a 403(b), 457, or traditional IRA, these accounts can supplement your pension. The earlier you start, the more you’ll benefit from compound growth.

c) Social Security

Not all teachers are eligible for Social Security, depending on your state. If you are, be aware of:

• Your expected benefit based on your earnings history.

• The Windfall Elimination Provision (WEP), which can reduce your benefit if you also receive a pension.

3. Don’t Overlook Healthcare

Healthcare is one of the largest retirement expenses — and one of the most overlooked. Medicare doesn’t cover everything, and out-of-pocket costs can add up quickly.

• Consider supplemental health insurance or long-term care insurance.

• Budget for prescriptions, dental, and vision care.

• Explore Health Savings Accounts (HSAs) if you're still working and eligible.

Tip: Review your school district's retiree healthcare options — some may offer coverage post-retirement.

4. Retirement Planning Isn’t Just Financial

Yes, money matters — but retirement is a life transition. Teachers often tie their identities to their careers, and stepping away from the classroom can be emotional.

Ask yourself:

• What will I do with my time?

• Do I want to travel, volunteer, teach part-time, or pursue hobbies?

• How will I stay connected to my community and maintain purpose?

Creating a retirement lifestyle plan alongside your financial one can help ensure you retire to something, not just from something.

5. Work with a Trusted Advisor

Retirement planning can feel overwhelming — especially with changing tax laws, investment options, and financial products. That’s where Teachers Financial Services comes in.

As specialists in working with educators, we help you:

• Understand your pension and retirement benefits

• Build a personalized retirement income strategy

• Minimize taxes and optimize your savings

• Stay on track with annual check-ins

6. Timeline: When Should I Start Planning?

It’s never too early — or too late — to start.

Career Stage	Key Retirement Actions
Early Career	Start a 403(b) or IRA, budget, build emergency savings
Mid-Career	Max out contributions, review pension, forecast retirement age
Nearing Retirement	Estimate expenses, choose payout options, create withdrawal plan
Already Retired	Manage withdrawals, monitor healthcare, adjust lifestyle as needed

Final Thoughts: Retirement Is Personal, But You Don’t Have to Do It Alone

Every educator’s journey is unique. Whether you dream of sipping coffee by the beach, writing a book, or finally visiting those destinations on your bucket list, retirement is your time to thrive. Let us help you make the most of it.

At Teachers Financial Services, we work for you — because you’ve spent your career working for others.